First, find the effective life of the asset
| Commissioner’s Effective Life Tables | |
| Tax Year | Ruling (download links) |
| 2020-21 | TR2020/3 |
| 2019-20 | TR 2019/5 |
| 2018-19 | TR 2018/4 |
| 2017-18 | TR 2017/2 |
| 2016-17 | TR 2016/1 |
| 2015-16 | TR 2015/2 |
| 2014-15 | TR 2014/4 |
| 2013-14 | TR 2013/4 |
| 2012-13 | TR 2012/2 |
| 2011-12 | TR 2011/2 |
Prime cost
depreciated evenly across the effective life.
Asset’s cost × (days held ÷ 365) × (100% ÷ asset’s effective life) Last modified: 07 Apr 2020 QC 45984
.
.
.
.
Diminishing value
- 50% of the asset you can claim immediately, and then you get half of the closing balance of each year thereafter (see excel below)
- Once it reaches $2 balance then it will end with 2 more payments
Normally: Base value × (days held ÷ 365) × (200% ÷ asset’s effective life) If you started to hold the asset before 10 May 2006, the formula for the diminishing value method is: Base value × (days held ÷ 365) × (150% ÷ asset’s effective life) Last modified: 07 Apr 2020 QC 45984
.
.
.
.
.
.
.
Reference
- https://www.ato.gov.au/Calculators-and-tools/Host/?anchor=DCA&anchor=DCA#DCA/questions/assets
- https://www.ato.gov.au/Individuals/Income-and-deductions/In-detail/Capital-allowances---$300-immediate-deduction-tests/
- https://www.ato.gov.au/individuals/income-and-deductions/deductions-you-can-claim/tools,-equipment-and-other-assets/
- https://www.ato.gov.au/Individuals/Income-and-deductions/Deductions-you-can-claim/Other-work-related-deductions/
- https://www.ato.gov.au/Individuals/Income-and-deductions/Deductions-you-can-claim/#WRE
- https://www.ato.gov.au/calculators-and-tools/depreciation-and-capital-allowances-tool/
- https://www.ato.gov.au/Calculators-and-tools/Host/?anchor=DCA&anchor=DCA#DCA/questions/assets
- https://www.ato.gov.au/Individuals/Income-and-deductions/In-detail/Capital-allowances---$300-immediate-deduction-tests/
- https://www.ato.gov.au/individuals/income-and-deductions/deductions-you-can-claim/tools,-equipment-and-other-assets/
- https://www.ato.gov.au/Individuals/Income-and-deductions/Deductions-you-can-claim/Other-work-related-deductions/
- https://www.ato.gov.au/Individuals/Income-and-deductions/Deductions-you-can-claim/#WRE
- https://www.ato.gov.au/calculators-and-tools/depreciation-and-capital-allowances-tool/
- https://duotax.com.au/depreciation-method/