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

There are two worksheets for managing assets under the UCA:

• Depreciation worksheet (d)
• Intangible/Tangible depreciating assets worksheet (it).

If you use the depreciation worksheet (d), all your assets will be managed and relevant amounts passed to the Intangible/Tangible depreciating assets worksheet (it) when you close the d worksheet.

If you aren't using the depreciation worksheet to manage your assets, an free data entry line is provided for in the it worksheet to manual entry.

All amounts entered from whatever source pass to the labels at item 9 when you close the worksheet.

If you are a Small business entities using the small business entity simplified depreciation rules, don't enter an amount at this label. Enter SBE asset values at item 10.

Use either or both of the two worksheets for managing assets under the UCA and completing item 9: Capital allowances:

• Depreciation worksheet (d)
• Intangible/Tangible depreciating assets worksheet (it).

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.

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 furthere information.

Select Yes or No as appropriate at label D.

Use either or both of the two worksheets for managing assets under the UCA and completing item 9: Capital allowances:

• Depreciation worksheet (d)
• Intangible/Tangible depreciating assets worksheet (it).

Show at E 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 this label E.

Use either or both of the two worksheets for managing assets under the UCA and completing item 9: Capital allowances:

• Depreciation worksheet (d)
• Intangible/Tangible depreciating assets worksheet (it).

Show at label F the total assessable income from balancing adjustment events on the disposal of intangible depreciating assets that occurred in the current income year. This type of assessable income can arises when you disposed of an intangible depreciating assets for more than their 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 label F.

Use either or both of the two worksheets for managing assets under the UCA and completing item 9: Capital allowances:

• Depreciation worksheet (d)
• Intangible/Tangible depreciating assets worksheet (it).

Show at G the total deductible amount from balancing adjustment events on the disposal of intangible depreciating assets that occurred in the current income year This type of assessable income can arises when you disposed of an intangible depreciating assets for more than their 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 label G.

Use either or both of the two worksheets for managing assets under the UCA and completing item 9: Capital allowances:

• Depreciation worksheet (d)
• Intangible/Tangible depreciating assets worksheet (it).

Use either or both of the two worksheets for managing assets under the UCA and completing item 9: Capital allowances:

• Depreciation worksheet (d)
• Intangible/Tangible depreciating assets worksheet (it).

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.

Use either or both of the two worksheets for managing assets under the UCA and completing item 9: Capital allowances:

• Depreciation worksheet (d)
• 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've not allocated any amounts for mining capital expenditure or transport capital expenditure on projects, leave this label blank.

Use either or both of the two worksheets for managing assets under the UCA and completing item 9: Capital allowances:

• Depreciation worksheet (d)
• Intangible/Tangible depreciating assets worksheet (it).

Enter the total deductions for decline in value of intangible depreciating assets used in exploration and prospecting expenditure. If you're not claiming an amount for exploration or prospecting, you do not need to complete this label.

Use either or both of the two worksheets for managing assets under the UCA and completing item 9: Capital allowances:

• Depreciation worksheet (d)
• Intangible/Tangible depreciating assets worksheet (it).

Enter the total deduction for the decline in value of other depreciating assets used in exploration and prospecting. If you're not claiming an amount for exploration or prospecting, leave this label blank.

Complete this label if you want to opt out of the temporary full expensing incentive.

• A - Some eligible assets = Opt out of some eligible assets

• B - All eligible assets = Opt out of all eligible assets.

See opt out on the ATO's website.

Enter the number of assets you want to opt out of temporary full expensing

the value of the assets you want to opt out of temporary full expensing

Enter the value of the deduction you want to claim.

See eligible assets on the ATO's website.

 Enter the number of assets you're claiming the temporary full expensing for.

Complete this label if you're using alternative income test.

See alternative income test on the ATO's website.

E