Fixed Asset Depreciation Rate Calculator & Life Lookup Tool

Calculate your fixed asset depreciation rate/effective life

This unique AssetAccountant™ search tool allows you to search fixed assets to determine the appropriate fixed asset depreciation rate, effective life and much more.

It is designed using the relevant Australian Tax Office (ATO) and New Zealand IRD references so you can rely on the calculations.

AssetAccountant™’s fixed asset depreciation calculator is quick and easy to use

It’s a quick and easy fixed asset depreciation lookup/calculation. Just enter an asset description eg ‘motor vehicle’ and you will be given a range of options to choose from as per this example: Basic machinery (ATO) Categories: Motor vehicle manufacturing plant (not listed elsewhere) Industry: Motor vehicle manufacturing Effective Life: 10 years Rate (Diminishing Value): 20.00% Rate (Prime Cost): 10.00% Applies from: 1 Jan 2001 ATO Reference

Why is it important to calculate the depreciation of assets?

Most businesses have assets that contribute to its ability to operate. Think of machinery, buildings, vehicles, furniture, computer hardware AND software. They all directly or indirectly contribute to a businesses’s revenue. The definition of depreciation is: An allowance for businesses to allocate the cost of a fixed asset over its useful life or life expectancy. But it generally does not make good sense to write-off all assets in their first year of use, notwithstanding recent generous legislation. This opens up a whole other discussion on Tax versus Accounting depreciation. Visit the link for the deep dive on this topic. But back to the question, why is it important to depreciate fixed assets?
  • Accuracy of financial information and reporting. Depreciation accurately states the incurred expense compared to the revenue contribution it makes. Under or over reporting depreciation can skew the financial position of a business so it is an important piece of compliance.
  • To delineate a tax value of an asset versus the book value. See again the above link if you haven’t already.
  • Calculating the current book value of any/all assets net of wear and tear. This is achieved by subtracting the accumulated depreciation from the original purchase cost of the asset.
  • Taking advantage of business tax incentives. Governments often change and amend its rules for tax depreciation. The calculator below will definitely help you to make sure you are depreciating for tax in the most effective way to lower the company’s annual taxable income thus increasing company tax savings. Subscribing to AssetAccountant™ software will keep even the most complex fixed asset register accurate and accessible.

AssetAccountant™ is free to use or trial for up to 25 assets.

How to use the depreciation calculator

  1. Use quotation marks to locate assets with words that must appear together. Otherwise, the search  will include fixed asset life and depreciation rates results where those words appear anywhere, and in any order.
    Example A: Search on car park signage using the ATO search tool. You will get 3 possible results.
    Example B: Now search on “car park” signage. You now only get one result.

  2. Use the plus (+) or minus (-) signs to refine your search. A plus sign indicates your search term or phrase must appear in the search results. A minus sign indicates words that must be absent in the search results.
    Example: If you are searching narrowly for a hand held welder, but not a mig welder, try this term welder -mig +portable and you will be returned with only one result.

Life/Rate Lookup

    This fixed asset depreciation calculator and rate lookup tool forms the basis of the AssetAccountant™ tax guide and rulings calculations for Australia and New Zealand.

    AssetAccountant™’s depreciation software makes calculating depreciation of assets easy

    Fixed asset depreciation for businesses and firms should not be done on spreadsheets except for the most basic of applications (E.g. only a few assets being depreciated for tax only).

    AssetAccountant™ fixed asset depreciation software provides you with automated workflows & localised tax and accounting rules.

    Eliminate manual spreadsheets forever!

    Try this powerful, cloud-based software for free today.