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