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Depreciation Calculator (ATO Methods)

Calculate tax depreciation on Australian business assets using ATO-approved methods: Prime Cost (straight-line) and Diminishing Value.

Asset Details
Asset cost (purchase price)
$
Asset effective life
years
Purchase date
Business use %
%
Method
Depreciation
Year 1 Deduction
—
YearPrime Cost ($)Diminishing Value ($)DV Book Value

ATO Depreciation Methods

Prime Cost (PC): Annual deduction = Cost × (Days/365) × (100%/Effective life). Equal deductions each year. Simpler to calculate.

Diminishing Value (DV): Annual deduction = Opening value × (Days/365) × (200%/Effective life). Higher deductions in early years. Most taxpayers prefer DV.

Instant Asset Write-Off (IAWO)

From 1 July 2025, small businesses (turnover <$10M) can immediately deduct the cost of assets under $20,000. Check ATO.gov.au for current thresholds.