Tax Depreciation · Koste Knowledge Base
Can You Switch from Prime Cost to Diminishing Value Depreciation?
Quick Answer
In Australia, once you choose a depreciation method (prime cost or diminishing value) for an asset, you must continue using it for the life of that asset, as per the ATO's guidelines under Division 40 of ITAA 1997. Switching methods is not allowed, so it's crucial to select the most beneficial method initially.
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