Glossary · Last reviewed 28 Oct 2026
What is decline in value?
Short answer
Depreciation: the way the cost of an asset, such as a car, is claimed over time as its value falls.
Source: ATO, logbook method · ATO, depreciation and capital expenses and allowances · checked 28 Oct 2026
With a car
If you use the logbook method you can generally claim the decline in value of the car, on the business portion of its cost. The cents per kilometre rate already includes it.
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