Depreciation Rate for Dishwashers in Australia (2026 ATO Guide)
What Is the Depreciation Rate for a Dishwasher in Australia?
According to the Australian Taxation Office (ATO), dishwashers have a effective life of 7 years. This gives you two depreciation rate options:
| Method | Rate | How It Works |
|---|---|---|
| Diminishing Value | 28.57% | Higher deductions in earlier years |
| Prime Cost | 14.29% | Equal deductions each year |
Diminishing value rate = 200% ÷ effective life (200% ÷ 7 = 28.57%). Prime cost rate = 100% ÷ effective life (100% ÷ 7 = 14.29%).
Worked Example: $4,000 Dishwasher
Purchase a dishwasher for $4,000 on 1 July 2025 (start of the financial year) for a full-year deduction:
Diminishing Value Method (28.57%)
| Financial Year | Opening Value | Deduction | Closing Value |
|---|---|---|---|
| 2025–26 | $4,000 | $1,143 | $2,857 |
| 2026–27 | $2,857 | $816 | $2,041 |
| 2027–28 | $2,041 | $583 | $1,458 |
| 2028–29 | $1,458 | $417 | $1,041 |
| 2029–30 | $1,041 | $297 | $744 |
| 2030–31 | $744 | $213 | $531 |
| 2031–32 | $531 | $152 | $379 |
| 2032–33 | $379 | $108 | $271 |
| 2033–34 | $271 | $77 | $194 |
Prime Cost Method (14.29%)
| Financial Year | Opening Value | Deduction | Closing Value |
|---|---|---|---|
| 2025–26 | $4,000 | $571 | $3,429 |
| 2026–27 | $3,429 | $571 | $2,858 |
| 2027–28 | $2,858 | $571 | $2,287 |
| 2028–29 | $2,287 | $571 | $1,716 |
| 2029–30 | $1,716 | $571 | $1,145 |
| 2030–31 | $1,145 | $571 | $574 |
| 2031–32 | $574 | $571 | $3 |
| 2032–33 | $3 | $3 | $0 |
Which method is better? Diminishing value gives you $1,143 in Year 1 vs $571 with prime cost. Most small businesses prefer diminishing value for the bigger upfront deduction.
First-Year Pro-Rata Rule
If you purchase the dishwasher partway through the financial year, your first-year deduction is pro-rated based on the number of days you held the asset.
Example: Buy a dishwasher for $4,000 on 1 January 2026 (181 days remaining in the FY).
- Diminishing value: $4,000 × 28.57% × (181/365) = $567
- Prime cost: $4,000 × 14.29% × (181/365) = $283
Instant Asset Write-Off
If your dishwasher costs less than the instant asset write-off threshold ($20,000 for the 2024–25 income year), you may be able to deduct the entire cost immediately rather than depreciating over 7 years. This applies to small businesses with aggregated turnover under $10 million.
Always check the current ATO guidance as thresholds can change each financial year.
What Counts as “Dishwashers” for ATO Purposes?
The ATO’s 7-year effective life applies to:
- Commercial dishwashers
- Under-counter dishwashers for business
- Conveyor dishwashers
- Glasswashers used in bars and restaurants
Commercial ovens and fridges have longer effective lives of 12 years each.
How to Claim Depreciation
- Must be used for business purposes. Only claim the business-use percentage. If you use the dishwasher 70% for work, claim 70% of the depreciation.
- Choose your method — diminishing value or prime cost. You must stick with the same method for the life of that asset.
- Keep records — purchase receipt, proof of business use percentage, and your depreciation schedule.
- Report in your tax return — include the deduction amount in your business expenses or work-related deductions.
Calculate Your Depreciation
Use our free depreciation calculator to get an instant depreciation schedule — just select “Dishwasher” and enter the purchase price and date.
Frequently Asked Questions
What is the ATO effective life for dishwashers?
The ATO sets the effective life at 7 years for dishwashers.
Should I use diminishing value or prime cost?
Most small businesses use diminishing value because it gives a bigger deduction in the first year ($1,143 vs $571 on a $4,000 dishwasher).
Can I claim the full cost as an immediate deduction?
If the dishwasher costs less than the instant asset write-off threshold and you are an eligible small business, yes — you can deduct the full cost in the year of purchase. If you also use it personally, only claim the business-use percentage.
What if I sell or dispose of the dishwasher before it’s fully depreciated?
You’ll need to do a balancing adjustment. If you sell it for more than the written-down value, the difference is assessable income. If you sell for less, you can claim the remaining amount as a deduction.