Understanding farm depreciation

Depreciation is the accounting method used to spread the cost of specific assets over the periods in which they are utilised for production.​

Plant and equipment, encompassing items that are easily movable or mechanical, are considered depreciable assets.

This calculator enables you to allocate the cost of your plant and equipment for a single financial year. The data produced by this tool offers a precise overview of the expenditure associated with owning plant and equipment.

It is important to note that this tool is not intended for tax calculations. The depreciation rates employed are based on estimated market values rather than official tax depreciation allowances.