Depreciation of in-house computer software
The government announced that it will increase from 2.5 to 4 years the period over which capital expenditure on in-house computer software is depreciated. This applies to expenditure made on or after 7.30pm Australian Eastern Standard Time (AEST) on 13 May 2008.
Depreciation for items exempted from fringe benefits tax (FBT)
The government announced that it will legislate to not allow employees to claim depreciation (decline in value) for the work-related percentage of FBT-exempt items (including laptops and similar portable computers, briefcases, calculators, mobile phones, tools of trade, protective clothing, computer software, electronic diaries, personal digital assistants and similar items, and certain portable printers). For items purchased after 7.30pm AEST on 13 May 2008 the proposed law will take effect from that time.
For items purchased before 7.30pm AEST on 13 May 2008, employees will not be able to claim depreciation for the 2008–09 and later income years. At the time of printing these instructions, the above two measures had not become law.
For more information, see our website www.ato.gov.au or phone the Business Infoline (see More information).