How to recognise Revenue on an asset written off?

 Author: YellowPotato(Taxicorn)Taxicorn

15 May 2026

Best to see a tax agent or ask ATO's technical advice

Side note: if you're registered for gst, generally would also be collecting GST on selling depreciating items as well. "The termination value is reduced by the GST payable if the balancing adjustment event is a taxable supply. It can be modified by increasing or decreasing adjustments."

Is this still classified under the 'Other Business Income - manually calculated' section?

how/where in my tax return for FY26 as a sole trader do I recognise this as revenue?

• It's balancing adjustment
  • https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/depreciation-and-capital-expenses-and-allowances/general-depreciation-rules-capital-allowances/disposing-or-ceasing-to-use-a-depreciating-asset
• Reconciliation Items
• "Income reconciliation adjustments include:
  • income add backs; this is income not shown in the accounts which is assessable income for tax purposes, such as
    • assessable balancing adjustment amounts on disposal of depreciating assets
    • other assessable income not included in the profit and loss statement"
    • https://www.ato.gov.au/individuals-and-families/your-tax-return/instructions-to-complete-your-tax-return/mytax-instructions/2025/income/sole-trader-and-business-income-or-losses-and-partnership-distributions/net-income-or-loss-from-business#Whatareincomereconciliationadjustments

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 Author: Gfield(Initiate)Initiate

15 May 2026

Hi thanks so much for your help.

So just to confirm please -

1. The section I would add this in is 'P8. Reconciliation items' under 'Income reconciliation adjustments'?
2. As an example, if the Asset cost $2k and was 100% written off under instant asset rules with $0 salvage. So under this balancing adjustment, if it was sold for $2k this is the 'termination value' and the 'adjustable value' (ie. the cost of the asset less depreciation deductions) would be $2k - $2k. Therefore the amount recorded under 'Income reconciliation adjustments' is $2k?

I am not registered for GST so that part of your response is not applicable to me, but thanks for the consideration.

Thanks again ! :-)

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