What is Depreciation?
Finance & accounting. A plain-English definition for Australian business owners.
Depreciation is the systematic allocation of an asset's cost over its useful life.
For tax purposes, ATO publishes depreciation rates and methods; for accounting purposes, businesses may use different methods. The instant asset write-off allows immediate deduction of eligible asset purchases below threshold amounts, simplifying the depreciation treatment for smaller assets.
In a connected back office this sits with the Finance hub, where Valont runs bookkeeping, managed payroll and bas & tax compliance for Australian SMEs as one team. The full definition set is on the glossary.
Talk to an Advisor
General information, not advice. For how this applies to your business, talk it through with a Trusted Advisor or start with the Business Health Check.