Scenario: The system is calculating the depreciation for building for 350 days to $4324 instead of $4312.
The $4324 is the correct calculation.
Calculation: Adjustable Value x Recalculated effective Life x Days held x Number of days = Decline in Value
$180,352 x 2.5% x 350 /365 = $4324
Check here (ATO link) for the formula of prime cost and diminishing value method from ATO site. In case of leap year, total days is still 365.
LodgeiT’s calculation is based on ATO instructions, that even in leap year we should divide total years by 365 not 366.
Note: It only affects days held. So, we always divide by 365 as it's a constant value in the formula