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About this guide

Last updated 7 April 2020

As a general rule, you can claim deductions for expenses you incurred in gaining or producing your income - for example, in carrying on a business - but some expenditure, such as the cost of acquiring capital assets, is generally not deductible. However, you can claim a deduction for the decline in value of the cost of capital assets used in gaining assessable income.

The Guide to depreciating assets 2005 explains:

  • how to work out the decline in value of your depreciating assets
  • what happens when you dispose of or stop using a depreciating asset, and
  • the deductions you may be able to claim under the uniform capital allowance system (UCA) for capital expenditure other than on depreciating assets.