Cost is $300 or less



This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

End of attention

If you are entitled to a GST input tax credit in relation to the asset, the cost is reduced by the input tax credit before determining whether the cost is $300 or less.

If you hold an asset jointly with others and the cost of your interest in the asset is $300 or less, then you can claim the immediate deduction even though the depreciating asset in which you have an interest costs more than $300 - see Jointly held depreciating assets.

Example: Cost is $300 or less - ignoring any GST impact

John, Margaret and Neil jointly own a rental property in the proportions of 50%, 25% and 25%. Based on their respective interests, they contribute $400, $200 and $200 to acquire a new refrigerator for the rental property. Margaret and Neil can claim an immediate deduction because the cost of their interest in the refrigerator does not exceed $300. John cannot claim an immediate deduction because the cost of his interest is more than $300.

Last modified: 18 Jul 2006QC 27742