capital allowances

From 1 July 2001, uniform capital allowance (UCA) rules apply to most depreciating assets, including those acquired before that date. The UCA system consolidates a range of former capital allowance provisions, including those relating to plant and equipment. It does this by providing a set of general rules that applies across a variety of depreciating assets and certain other expenditure. It maintains some concessional tax treatments such as those applying to primary production depreciating assets. It also introduces new deductions for certain types of capital expenditure that did not previously attract a deduction.

Taxpayers now calculate deductions for the decline in value of their depreciating assets using these rules. This means that if you were deducting amounts under one of the former capital allowance provisions that has been consolidated, you can calculate the decline in value under the UCA system