The balance of $5,300 was for the purchase of a new air conditioner on 30 January 2022 for one of the investment properties. The old air conditioner would have cost $3,600 to repair and Sam felt it was cheaper to buy a new one. It has an effective life of 10 years.

under the ATO, what is the depreciation rate, is it 2.5% or can he use his own rate. is this considered as an improvement and why?