You may be able to claim deductions for the decline in value of depreciating assets such as machinery and other equipment used in your business.
If you claim deductions for the decline in value of your depreciating assets, you must keep:
- the original purchase agreements or invoices, and
- information used to work out your deductions, such as the amount of any private use of the assets.
If your business turnover is less than $2 million you may be eligible for an immediate write-off for assets costing $1,000 each and pooling of depreciating assets.
To help you keep this information, the ATO has produced a depreciating assets worksheet.
The decline in value of some assets that cost, or have been written off to, less than $1,000 can be worked out through a low-value pool using set rates. The ATO has produced a low-value pool worksheet to help you keep the required information about these assets.
More information
See the Guide to depreciating assets (NAT 1996) for a copy of the worksheets and more information about the records you must keep relating to decline in value (depreciation).
|