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.
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
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?
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.
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.