Who can claim
This deduction is available to individuals.
- You incurred eligible primary-production capital expenditure and later ceased the relevant business.
- An identified capital-allowance provision continues to permit the deduction after cessation.
What you cannot claim
- Do not claim private expenditure or an amount already deducted through another asset or capital-allowance rule.
- A sale or disposal can trigger a balancing adjustment or CGT consequence instead of an ordinary deduction.
How the amount is worked out
Identify the exact Division 40 entitlement first, then continue only the deduction that provision permits after cessation, adjusted for recoupment, disposal or balancing events.
Records the ATO expects
- Business cessation date
- Original capital invoices
- Asset and deduction schedule
- Disposal records
Where this rule comes from
Primary source: Income Tax Assessment Act 1997 Subdivision 40-F (Sections 40-515 to 40-575). Reviewed 30 July 2026. Covers the 2025-26 and 2026-27 income years.