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Last updated 10 December 2019

Under the UCA, there are a number of steps in working out your deduction for the decline in value of a depreciating asset:



Is your asset a depreciating asset covered by the UCA?

What is a depreciating asset

Do you hold the depreciating asset?

Who can claim deductions for the decline in value of a depreciating asset?

Has the depreciating asset started to decline in value?

When does a depreciating asset start to decline in value?

What method will you use to work out decline in value?

Methods of working out decline in value

What is the effective life of the depreciating asset?

Effective life

What is the cost of your depreciating asset?

The cost of a depreciating asset

Must you reduce your deduction for any non-taxable use?

Decline in value of depreciating asset used for non-taxable purpose

Some of these steps do not apply:

  • if you choose to allocate an asset to a pool
  • if you can claim an immediate deduction for the asset
  • to certain primary production assets
  • to some assets used in rural businesses

See Working out decline in value.