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Does the ATO website provide incorrect advice about depreciation?

Newbie

Views 269

Replies 2

The ATO webpage for calculating the decline in value of a depreciating asset gives two formulas for the diminishing value method, depending on when you began holding the asset.  However, both formulas are exactly the same:

https://www.ato.gov.au/Business/Depreciation-and-capital-expenses-and-allowances/In-detail/Depreciat...

 

This surprised me, so I had a quick look at the history of the page.  Assuming the formulas ought to be different, the page has been incorrect for almost two years.  However, the incorrect information provided has changed.  Back in August 2019 (the earliest snapshot available), both formulas had numerators of 150%.  Then, somewhere between August 2020 and January 2021, both numerators were updated to 200% (despite this being inconsistent with the webpages stating they were "Last modified: 07 Apr 2020"):

- http://web.archive.org/web/20190811091909/https://www.ato.gov.au/business/depreciation-and-capital-e...

- http://web.archive.org/web/20200805181155/https://www.ato.gov.au/Business/Depreciation-and-capital-e...

http://web.archive.org/web/20210116212501/https://www.ato.gov.au/business/depreciation-and-capital-e...

 

Upon further digging, I *think* the first formula should use a numerator of 150%, whereas the second formula should use a numerator of 200% - see https://www.ato.gov.au/uploadedFiles/Content/IND/Downloads/guide-to-depreciating-assets-2020.pdf#pag... .  But could the diligent staff of the ATO please confirm this?  If so, would you kindly fix your website?

 

 

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Former Community Support

Replies 1

Hi @test1234567890,

 

Thanks for raising this with us. We've forwarded this feedback on to our web content area to investigate. If information is confirmed to be incorrect it will indeed be updated, and quite swiftly. 

 

Have a great weekend. Smiley Happy

2 REPLIES 2

Most helpful response

Former Community Support

Replies 1

Hi @test1234567890,

 

Thanks for raising this with us. We've forwarded this feedback on to our web content area to investigate. If information is confirmed to be incorrect it will indeed be updated, and quite swiftly. 

 

Have a great weekend. Smiley Happy

Former Community Support

Replies 0

Hi @test1234567890,

 

Just an update! They are in the process of fixing the info. Thanks again for all your help!