Depreciation Rate for Office Desks in Australia (2026 ATO Guide)
What Is the Depreciation Rate for an Office Desk in Australia?
According to the Australian Taxation Office (ATO), office desks have a effective life of 10 years. This gives you two depreciation rate options:
| Method | Rate | How It Works |
|---|---|---|
| Diminishing Value | 20.00% | Higher deductions in earlier years |
| Prime Cost | 10.00% | Equal deductions each year |
Diminishing value rate = 200% ÷ effective life (200% ÷ 10 = 20.00%). Prime cost rate = 100% ÷ effective life (100% ÷ 10 = 10.00%).
Worked Example: $1,500 Office Desk
Purchase an office desk for $1,500 on 1 July 2025 (start of the financial year) for a full-year deduction:
Diminishing Value Method (20.00%)
| Financial Year | Opening Value | Deduction | Closing Value |
|---|---|---|---|
| 2025–26 | $1,500 | $300 | $1,200 |
| 2026–27 | $1,200 | $240 | $960 |
| 2027–28 | $960 | $192 | $768 |
| 2028–29 | $768 | $154 | $614 |
| 2029–30 | $614 | $123 | $491 |
| 2030–31 | $491 | $98 | $393 |
| 2031–32 | $393 | $79 | $314 |
| 2032–33 | $314 | $63 | $251 |
| 2033–34 | $251 | $50 | $201 |
| 2034–35 | $201 | $40 | $161 |
| 2035–36 | $161 | $32 | $129 |
| 2036–37 | $129 | $26 | $103 |
Prime Cost Method (10.00%)
| Financial Year | Opening Value | Deduction | Closing Value |
|---|---|---|---|
| 2025–26 | $1,500 | $150 | $1,350 |
| 2026–27 | $1,350 | $150 | $1,200 |
| 2027–28 | $1,200 | $150 | $1,050 |
| 2028–29 | $1,050 | $150 | $900 |
| 2029–30 | $900 | $150 | $750 |
| 2030–31 | $750 | $150 | $600 |
| 2031–32 | $600 | $150 | $450 |
| 2032–33 | $450 | $150 | $300 |
| 2033–34 | $300 | $150 | $150 |
| 2034–35 | $150 | $150 | $0 |
Which method is better? Diminishing value gives you $300 in Year 1 vs $150 with prime cost. Most small businesses prefer diminishing value for the bigger upfront deduction.
First-Year Pro-Rata Rule
If you purchase the desk partway through the financial year, your first-year deduction is pro-rated based on the number of days you held the asset.
Example: Buy an office desk for $1,500 on 1 January 2026 (181 days remaining in the FY).
- Diminishing value: $1,500 × 20.00% × (181/365) = $149
- Prime cost: $1,500 × 10.00% × (181/365) = $74
Instant Asset Write-Off
If your desk 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 10 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 “Office Desks” for ATO Purposes?
The ATO’s 10-year effective life applies to:
- Standard office desks
- Standing desks and sit-stand desks
- Reception desks
- Workbenches used in an office environment
- Conference tables
Office chairs also have a 10-year effective life.
How to Claim Depreciation
- Must be used for business purposes. Only claim the business-use percentage. If you use the desk 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 “Office Desk” and enter the purchase price and date.
Frequently Asked Questions
What is the ATO effective life for office desks?
The ATO sets the effective life at 10 years for office desks.
Should I use diminishing value or prime cost?
Most small businesses use diminishing value because it gives a bigger deduction in the first year ($300 vs $150 on a $1,500 desk).
Can I claim the full cost as an immediate deduction?
If the desk 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 desk 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.