ATO Letter: small business entity depreciation assets deduction field that is higher than the amount reported at the depreciation expenses field.

Modified on: Wed, 15 Jul, 2026 at 9:16 AM

ATO Letter: "You have reported an amount at the small business entity depreciation assets deduction field that is higher than the amount reported at the depreciation expenses field. As this amount cannot be higher, we need to confirm the correct amounts."

Guidance:

You have received this advise from ATO, because the Label 6X is lower than Label 10X as per ATO rules. You need to update your imported financials to make Label 6X to be equal or greater than Label 10A, so that you resolve the concern of ATO.

https://www.ato.gov.au/forms-and-instructions/company-tax-return-2026-instructions/instructions-to-complete-the-company-tax-return-2026/items-6-to-14/6-expenses#XDepreciationexpenses

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