DEPRECIATION FOR NON-BUSINESS TAXPAYERS


For individuals not in business, who are preparing their tax return over the coming months, depreciable items you acquire for work purposes can in certain circustances be claimed outright. This means you get an immediate deduction for the cost of the asset to the extent that you use it to generate assessable income during the income year:

The immediate deduction is availasble when you start to hold a depreciating asset in an income year and the asset costs $300 or les, and:
  • Is used predominantly for the purpose of producing assessable income that is not derived from carrying on a business
  • Is not part of a set of assets you start to hold in that year that costs more thant $300 , and
  • Is not one of a number identical or substantially identical assets acquired in the same year that together cost more than $300.

Examples of depreciating assets which could be eligible for the immediate deduction are:
  • Tools of trade acquired by a tradesman
  • A briefcase purchased by a salary and wage earner for their job; and
  • Furniture purchased for a rental property.