Calculate asset depreciation using Prime Cost or Diminishing Value — with automatic FY pro-rating, instant asset write-off eligibility check, business use % adjustment and a complete year-by-year schedule. Based on ATO TR 2023/1 and ITAA 1997 Div 40.
Asset details
Enter the asset cost and purchase date above to generate the depreciation schedule.
| Period | Opening WDV | Depreciation | Closing WDV |
|---|
ATO TR 2023/1 & ITAA 1997 Div 40. Prime Cost: cost x days/365 x 1/life. Diminishing Value: base x days/365 x 2/life. Verify with your registered tax agent.
Equal deductions every year. Simple and predictable. Best for assets that wear evenly over time — office furniture, some vehicles.
Higher deductions in early years. Best when you want to front-load deductions — ideal for tech assets that lose value quickly. Base value = cost less prior depreciation.
| Financial Year | Threshold | Eligibility | Notes |
|---|---|---|---|
| FY2025-26 | $20,000 | SBE < $10M | Per asset. Must be first used or installed ready for use in the FY |
| FY2024-25 | $20,000 | SBE < $10M | Extended by legislation |
| FY2023-24 | $20,000 | SBE < $10M | Budget measure confirmed by legislation |
Motor vehicles are subject to the luxury car limit ($69,674 FY2024-25). Always verify with your registered tax agent.
Prime cost (straight-line) claims equal deductions each year: cost × days/365 × 1/effective life. Diminishing value claims higher deductions in early years: base value × days/365 × 2/effective life. Most businesses choose diminishing value to maximise early tax deductions, particularly for technology assets that lose value quickly.
For FY2025-26, small businesses with aggregated turnover under $10 million can immediately deduct the full cost of eligible assets costing less than $20,000. The asset must be first used or installed ready for use by 30 June 2026. Assets above the $20,000 threshold use standard Prime Cost or Diminishing Value depreciation.
The ATO requires the first-year depreciation to be pro-rated based on the days the asset was held in that financial year. An asset purchased on 1 January receives approximately 181/365 of a full year's deduction. This calculator automatically applies the correct pro-rata based on your purchase date.
The ATO publishes effective life determinations in TR 2023/1. Common examples: computers and laptops (4 years), motor vehicles (8 years), office furniture and fitout (10 years), general plant and machinery (10 years), tools and equipment (5 years). You may self-assess a shorter life if you can demonstrate the asset experiences faster wear and tear than the ATO standard.
You can only claim depreciation on the proportion of the asset used for business purposes. If you use a vehicle 70% for business and 30% personally, only 70% of the depreciation is deductible. Adjust the business use slider in this calculator to see the exact deductible amount. Keep records (e.g. a logbook) to substantiate your business use percentage.
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OrtúsPro Global maintains depreciation schedules, asset registers and tax reconciliations for Australian businesses.