When something is a fixed asset
Any tangible item used in the business and expected to last more than 12 months — typically over the instant-asset-write-off threshold (currently $20,000 for the 2024–25 year for small businesses). Below that threshold, you can expense it outright and skip the depreciation schedule altogether.
Common fixed assets: vehicles, computers, office furniture, plant and equipment, leasehold improvements.
Adding an asset
From Accounting → Fixed Assets → New asset:
- Name and description (e.g. "Ford Ranger 2024", "MacBook Pro 16-inch")
- Purchase date and purchase cost (GST-exclusive)
- Asset account (where the cost sits — usually a sub-account of Fixed Assets)
- Depreciation method
- Effective life (in years — ATO publishes these for every common asset type)
- Business-use % (if you use the asset partially for personal — usually applies to vehicles)
The four depreciation methods
- Prime cost (straight-line): cost ÷ effective life, evenly across each year. Simple, predictable.
- Diminishing value: a higher rate applied to the remaining book value each year. Front-loads the deduction.
- Pool (SBE simplified pool): assets over the threshold pooled together and depreciated as one balance. Available to small business entities.
- Immediate write-off: full cost expensed in the year of purchase (for assets under the IAWO threshold).
The choice is locked once the asset is in service for the year. You can change it for the next financial year if your circumstances change.
What posts automatically
At purchase, you record the bill as you normally would, against the asset account. The asset is then linked to that purchase from the asset detail page.
At month-end (or year-end if you prefer), the Run depreciation action on the Fixed Assets page calculates the period's depreciation across every active asset and posts the journal:
- Dr Depreciation Expense
- Cr Accumulated Depreciation (sub-account of the asset)
The asset's book value (cost minus accumulated depreciation) is visible on the asset detail page and on the Balance Sheet.
Disposing of an asset
From the asset detail page, click Dispose. You will be asked for:
- Disposal date
- Disposal proceeds (sale price, or zero for scrap)
OneBookPlus posts a balanced journal:
- Dr Bank (or AR) for the proceeds
- Dr Accumulated Depreciation to clear it
- Cr Fixed Asset to remove the original cost
- Dr or Cr Gain/Loss on Disposal for the difference
The asset disappears from the active register. If it was held longer than 12 months you may be eligible for the 50% CGT discount on any capital gain component — flagged on the disposal confirmation screen.