P17 Intangible depreciating assets first deducted
Answer the following questions to complete this label.
Do you use the simplified depreciation rules?
- Yes – Small business entities using the simplified depreciation rules don't complete this question. Go to P21 Trading stock election.
- No – Read on.
Have you started to deduct the decline in value of any intangible depreciating assets?
- No – Go to P18 Other depreciating assets first deducted.
- Yes – Read on.
You need to know
The following intangible assets are regarded as depreciating assets (as long as they aren't trading stock):
- certain items of intellectual property, such as patents, registered designs, copyrights and certain types of licences
- computer software (or a right to use computer software) that you acquire, develop or have someone else develop for your use for the purposes for which it is designed (in-house software)
- mining, quarrying or prospecting rights and information
- certain indefeasible rights to use a telecommunications cable system
- certain telecommunications site access rights
- spectrum licences.
A depreciating asset that you hold starts to decline in value from the time you use it or install it ready for use for any purpose, including a private purpose. However, you can only claim a deduction for the decline in value to the extent that you use the asset for a taxable purpose, such as for producing assessable income.
At P17 Intangible depreciating assets first deducted you need to show the cost of all intangible depreciating assets that you're claiming a business deduction for decline in value for the first time. If you have allocated any intangible depreciating assets with a cost of less than $1,000 to a low-value pool for the income year, you also need to include the cost of those assets at P17 Intangible depreciating assets first deducted. Don't reduce the cost for estimated non-taxable use.
Expenditure on in-house software that you allocated to a software development pool isn't shown at P17 Intangible depreciating assets first deducted.
For more information, see Guide to depreciating assets 2025.
Completing this question
Step 1: Add up the costs of intangible depreciating assets first deducted from each business.
Step 2: Write the total at P17 – label I in your schedule. Don't show cents.
P18 Other depreciating assets first deducted
Answer the following questions to complete this label.
Do you use the simplified depreciation rules?
- Yes – Small business entities using the simplified depreciation rules don't complete this question. Go to P21 Trading stock election.
- No – Read on.
Have you started to deduct the decline in value of any other depreciating assets in 2024–25?
- No – Go to P19 Termination value of intangible depreciating assets.
- Yes – Read on.
You need to know
A depreciating asset that you hold starts to decline in value from the time you use it or install it ready for use for any purpose, including a private purpose. However, you can claim a deduction for the decline in value only to the extent you use the asset for a taxable purpose, such as for producing assessable income.
At P18 Other depreciating assets first deducted you need to include the cost of all depreciating assets (other than intangible depreciating assets) that you're claiming a business deduction for the decline in value for the first time.
If you have allocated any depreciating assets with a cost of less than $1,000 to a low-value pool for 2024–25, you also need to include the cost of those assets at P18 Other depreciating assets first deducted. Don't reduce the cost for estimated non-taxable use.
To calculate the decline in value of these assets use the Depreciation and capital allowances tool.
For more information, see Guide to depreciating assets 2025.
Completing this question
Step 1: Add up the costs of other depreciating assets first deducted from each business.
Step 2: Write the total at P18 – label J in your schedule. Don't show cents.
P19 Termination value of intangible depreciating assets
Answer the following questions to complete this label.
Do you use the simplified depreciation rules?
- Yes – Small business entities using the simplified depreciation rules don't complete this question. Go to P21 Trading stock election.
- No – Read on.
Have you stopped holding or using any intangible depreciating assets in 2024–25?
- No – Go to P20 Termination value of other depreciating assets.
- Yes – Read on.
You need to know
Don't show at this question any amounts you receive during 2024–25 in relation to in-house software for which you have allocated expenditure to a software development pool.
Include the termination values for intangible depreciating assets (including intangible assets allocated to a low-value pool) that you stop holding or using during 2024–25 (for example, assets you sold, or that were lost or destroyed).
Generally, the termination value is the amount you receive or are deemed to receive for the asset that you stop holding or using. It includes the market value of any non-cash benefits, such as goods and services, you received for the asset.
Where the amount you receive or are deemed to receive for the asset is less than its market value, and you don't deal at arm's length with another party to the transaction, the termination value is the market value of the asset just before you stop holding it.
Completing this question
Step 1: Add up the amounts you receive or are deemed to receive for all intangible depreciating assets that you stop holding or using in your business, other than one of the following:
- assets allocated in a prior year to the general small business pool or the formerly available long-life small business pool
- low-cost assets that an immediate deduction is allowed under the simplified depreciation rules
- in-house software that you allocate expenditure to a software development pool.
If you have more than one business, add up the termination value of intangible depreciating assets amounts for each business.
Step 2: Write the total at P19 – label D in your schedule. Don't show cents.
For more information, see Guide to depreciating assets 2025.
P20 Termination value of other depreciating assets
Answer the following questions to complete this label.
Do you use the simplified depreciation rules?
- Yes – Small business entities using the simplified depreciation rules don't complete this question. Go to P21 Trading stock election.
- No – Read on.
Have you stoped holding or using any other depreciating assets in 2024–25?
- No – Go to P21 Trading stock election.
- Yes – Read on.
You need to know
At P20 Termination value of other depreciating assets you include the termination values for other depreciating assets (including assets allocated to a low-value pool) that you stop holding or using during 2024–25. For example, assets:
- you sell
- you dispose of under a private or domestic arrangement
- lost or destroyed.
Generally, the termination value is the amount you receive or are deemed to receive for the asset that you stop holding or using. It includes the market value of any non-cash benefits, such as goods and services, you receive for the asset.
Where the amount you receive or are deemed to receive for the asset is less than its market value, and you don't deal at arm's length with another party to the transaction, the termination value is the market value of the asset just before you stop holding it.
Completing this question
Step 1: Add up the amounts you receive or are deemed to receive for all depreciating assets that you stop holding or using in your business other than:
- intangible depreciating assets
- assets allocated in a prior year to the general small business pool or the formerly available long-life small business pool
- assets that an immediate deduction is allowed under the simplified depreciation rules
- buildings or structures that a deduction is available under the capital works provisions
- assets falling within the provisions relating to investments in Australian films.
If you have more than one business, add up the termination value of other depreciating assets for each business.
Step 2: Write the total at P20 – label K in your schedule. Don't show cents.
For more information, see Guide to depreciating assets 2025.
Continue to: Trading stock election – P21
Return to: Instructions to complete the BPI schedule 2025