Business · Depreciating assets

Asset Balancing Adjustment Calculator

Estimate the income or deduction created when you sell, lose or permanently stop using a depreciating asset.

Division 40Asset disposalTaxable-use split
01 —ASSET DISPOSAL

The asset's written-down tax value immediately before the event.

For example, advertising or commission costs added to the asset's cost.

Only needed below 100% taxable use — the ATO measures the private-use capital gain or loss against cost, not adjustable value.

02 —BALANCING ADJUSTMENT
Awaiting input

Enter the adjustable value and sale proceeds.

What this estimate includes

  • Termination value is reduced by GST payable when the disposal is a taxable supply.
  • Advertising and commission costs can be included in the asset’s second element of cost.
  • The private-use capital gain or loss is measured against cost, not adjustable value.

Frequently asked questions

What is a balancing adjustment event?
It generally occurs when you stop holding a depreciating asset, stop using it and expect never to use it again, or the ownership interests in the asset change.
Is selling an asset above its written-down value taxable?
Under the general Division 40 rule, termination value above adjustable value produces an assessable balancing adjustment. A lower termination value can produce a deduction.
Does private use change the result?
Yes. The balancing adjustment is reduced for non-taxable use, and a separate capital gain or loss may arise on that private-use share. The ATO measures it against the asset’s cost, not its adjustable value, so enter the original cost to see it.

Tax Accuracy & Sources

Reviewed: 30 July 2026 · Tax year: General Division 40 rules

General Division 40 estimate only. It excludes pools, simplified depreciation, involuntary-disposal relief, rollovers, cars, software pools and the final CGT calculation. The ATO disregards the private-use capital gain or loss altogether for some assets, including cars under one tonne carrying fewer than 9 passengers, motorcycles, assets depreciated under the small business simplified rules in the year of the event, pre-20 September 1985 assets, and personal-use assets within the CGT limits.

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