Both methods are ATO-approved and claim the same total — but one puts far more money in your pocket in the early years. Here's how to choose.
The diminishing value and prime cost methods are two ATO-approved ways to claim the decline in value of your plant & equipment. They claim the same total over an asset's life — but the timing is very different.
Most investors chasing early cash flow choose diminishing value; those who prefer steady, even deductions choose prime cost. We model both and recommend the approach that best suits your goals.
The diminishing value method front-loads larger deductions in the early years, which suits investors who want maximum cash flow now. The prime cost method spreads deductions evenly over an asset's life. Once chosen for an asset, the method generally can't be changed.
Assets costing less than $1,000 (or written down below that) can be grouped into a low-value pool and depreciated at an accelerated rate — 18.75% in the first year and 37.5% thereafter — regardless of the method used elsewhere.
Yes. Eligible assets costing $300 or less can generally be written off in full in the year of purchase, an immediate deduction we always look to maximise.
Request a quote today, or estimate your deductions in 60 seconds with our calculator.
Backed by the SJB 200% Guarantee — double your fee in year one, or you pay nothing.
Tell us about your property in about two minutes and we'll send your fixed quote within one business day — with everything we need, so there's no back-and-forth.
Request a Quote →Prefer to talk? Call 1300 488 375