Depreciation refers to the decline in value of an asset as time goes on. While not all assets undergo this process, those with a limited effective lifespan are expected to lose value over their operational years. Common examples of depreciable assets include tools and equipment (such as electronics and machinery), fixtures and fittings (like office furniture), and motor vehicles (including cars, tractors, and heavy goods vehicles). The ATO offers guidelines for claiming tax deductions on these depreciable assets, and Tyro Accounting assists in accurately recording and calculating depreciation in accordance with ATO regulations. It's important to note that the approach to depreciation for tax purposes may differ from that used for accounting purposes. Tyro Accounting assists with the calculation of depreciation for tax-related purposes rather than for accounting considerations. For more information on depreciation, see Depreciation and capital expenses and allowances | Australian Taxation Office (ato.gov.au)