Item 9 - Capital allowances Depreciating assets first deducted this income year

Small business entities using the small business entity simplified depreciation rules do not enter an amount at this label.

All other companies

Show at this label the cost of all intangible depreciating assets for which the company is claiming a deduction for decline in value for the first time.

Click the label to enter the various amounts in an Intangible/Tangible depreciating assets worksheet (it).

Also, refer to the publication Guide to depreciating assets.

A depreciating asset that the company holds starts to decline in value from the time the company uses it (or installs it ready for use) for any purpose. However, the company can only claim a deduction for the decline in value to the extent it uses the asset for a taxable purpose, such as for producing assessable income.

Show at B Other depreciating assets first deducted the cost of all depreciating assets (other than intangible depreciating assets) for which the company is claiming a deduction for the decline in value for the first time.

If the company has allocated any assets (other than intangible depreciating assets) with a cost of less than $1,000 to a low-value pool for the income year, also include the cost of those assets at B Other depreciating assets first deducted. Do not reduce the cost for estimated non-taxable use.

For information on decline in value, cost and low-value pools, see the Guide to depreciating assets.

Self-assessment of effective life: For most depreciating assets, you can choose to:

• Work out the effective life yourself (self-assess), or

• Use an effective life determined by the Commissioner.

If you have adopted the Commissioner’s effective life determination for all your depreciating assets, select No at C.

If you have self-assessed the effective life of any of your depreciating assets, select Yes at C.

Recalculation of effective life: You may recalculate the effective life of assets in certain circumstances if the effective life you have been using is no longer accurate. There are also circumstances where you must recalculate the effective life of a depreciating asset. See the ATO website for more information.

Select Yes or No as appropriate at label D.

Show at E Total adjustable values at end of income year the total of the adjustable values of your depreciating assets as at the end of the income year.

If the company has allocated any assets with a cost of less than $1,000 to a low-value pool for the income year, do not include the adjustable values of those assets at E Total adjustable values at end of income year.

Show at F Assessable balancing adjustments on the disposal of intangible depreciating assets the total assessable income you have from balancing adjustment events on the disposal of intangible depreciating assets that occurred this income year (this type of assessable income may arise if, for example, you disposed of an intangible depreciating asset for more than its adjustable value). If you do not have any assessable balancing adjustment amounts for intangible assets this year, leave this label blank.

If the company has allocated any assets with a cost of less than $1,000 to a low-value pool for the income year, do not include the assessable balancing adjustments for these assets at F Assessable balancing adjustments on the disposal of intangible depreciating assets.

Show at G Deductible balancing adjustments on the disposal of intangible depreciating assets the total deductible amount you have from balancing adjustment events on the disposal of intangible depreciating assets that occurred this income year (this type of deduction may arise if, for example, you disposed of an intangible depreciating asset for less than its adjustable value). If you do not have any deductible balancing adjustment amounts for intangible assets this year, leave this label blank.

If the company has allocated any assets with a cost of less than $1,000 to a low-value pool for the income year, do not include the assessable balancing adjustments for these assets at G Deductible balancing adjustments on the disposal of intangible depreciating assets.

Click the label to enter the various amounts in an Intangible/Tangible depreciating assets worksheet (it).

For more information on balancing adjustment events, termination value, in-house software and software development pools, refer to the publication Guide to depreciating assets.

Enter at this label the termination value of each balancing adjustment event occurring for depreciating assets to which the UCA rules in division 40 of the ITAA 1997 apply, including assets allocated to a low-value pool.

Click the label to enter the various amounts in a Intangible/Tangible depreciating assets worksheet (it).

Enter the total amount you have allocated to a project pool for mining capital expenditure and/or transport capital expenditure for the project for the year. If you have not allocated any amounts for mining capital expenditure or transport capital expenditure on projects, leave this label blank.

Enter the total deductions for decline in value of intangible depreciating assets used in exploration and prospecting expenditure. If you did not claim any amounts for exploration or prospecting, you do not need to complete this label.

Enter the total deduction for the decline in value of other depreciating assets used in exploration and prospecting. If you did not claim any amounts for exploration or prospecting, you do not need to complete this label.

CCH References

17-015 Depreciating assets

17-270 Effective life of asset

17-280 Statutory effective life

17-640 Termination value of depreciating assets