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Effective life of depreciating assets

How to find the effective life of a depreciating asset when claiming a deduction.

Last updated 11 June 2024

The effective life of a depreciating asset is the period it can be used by any entity for a specified purpose, one of which is to produce assessable income.

The effective life of a depreciating asset is used to work out the asset’s decline in value (depreciation) for income tax purposes.

Ways to work out the effective life of a depreciating asset.

Learn how we make determinations of effective life of a depreciating asset and the factors we take into account.

Details of ATO effective life determinations, rulings, and law relating to the effective life of depreciating assets.

QC45985