Tax & GST

Capital assets and expenses


Capital assets and expenses

Monday, December 24, 2018

Assets that have a longer life are called capital assets. Examples include buildings, motor vehicles, furniture, machinery and equipment.

A capital expense is either:

* the cost of an asset that has a longer life (usually more than one income year)

* an expense associated with establishing, replacing, enlarging or improving the structure of your business

Website development and software expenses can be claimed differently depending on the type of expense and how much it costs.

You may be able to claim deductions for certain small value assets in the year of purchase. Otherwise, you claim an amount for the decline in value (that is, depreciation) of the asset each year over a number of years.

You can also ‘pool’ most capital assets and claim depreciation for the pool, which is simpler than depreciating the individual assets.

If you're an eligible small business you can use the simplified depreciation method, which allows you to claim expenses for assets (up to a certain limit) in the year the expense was incurred.

For more information visit
(extract taken from the Australian Taxation website)

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Monday, December 24, 2018


Tax & GST


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