Taxation Ruling
TR 2014/4
TR 2014/4 - Income tax: effective life of depreciating assets (applicable from 1 July 2014)
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Please note that the PDF version is the authorised consolidated version of this ruling and amending notices.This Ruling, which applies from 1 July 2014, replaces TR 2013/4 (see paragraph 5 of this Ruling for further details).This document has changed over time. View its history.
Appendix 2 - Detailed contents list
58. The following is a detailed contents list for this Ruling.
| Paragraph | |
| What this Ruling is about | 1 |
| Previous Ruling | 5 |
| Ruling | 6 |
| Effective life determination | 6 |
| Effective life applicable | 8 |
| How to use Tables A and B | 10 |
| Date of effect | 13 |
| Appendix 1 - Explanation | 14 |
| Overview | 14 |
| How does the Commissioner determine the effective life of a depreciating asset? | 19 |
| Physical life | 22 |
| Manufacturing specifications/Engineering information | 25 |
| Use of the asset in a particular industry | 26 |
| Use of the asset in different industries | 27 |
| Industry standards | 28 |
| Repairs and maintenance | 30 |
| Retention period | 32 |
| Obsolescence | 33 |
| Scrapping or abandonment practices | 39 |
| Lease periods | 41 |
| Financial analysis | 42 |
| Market value | 43 |
| Working out your own effective life | 44 |
| Capped lives | 48 |
| Decline in value calculation | 53 |
| New and reviewed effective lives | 54 |
| Important terms and definitions in Tables A and B | 55 |
| Appendix 2 - Detailed contents list | 58 |
| Schedule - ANZSIC categories | Page 14 |
| Schedule - Industry listing | Page 18 |
| Schedule - Table A | Page 28 |
| Schedule - Table B | Page 235 |
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Not issued as a draft
References
ATO references:
NO 99/132027; 2000/20567; 2003/11601; 2004/17815; 2005/6504; 2005/18073; 2006/25212; 2007/7796; 2008/9394; 2009/5704; 1-20KCCA6; 1-2Z8ZAX4; 1-3VCCZ0O; 1-4NMTK3G; 1-5EJ20VG
Related Rulings/Determinations:
IT 2685
TR 2000/18
TR 2006/5
TR 2006/15
TR 2007/3
TR 2008/4
TR 2009/4
TR 2010/2
TR 2011/2
TR 2012/2
TR 2013/4
Subject References:
capped lives
determination of effective life
decline in value
depreciating assets
effective life
effective life determination
Legislative References:
ITAA 1997
ITAA 1997 Div 40
ITAA 1997 40-70(1)
ITAA 1997 40-72(1)
ITAA 1997 40-75(1)
ITAA 1997 40-95
ITAA 1997 40-100
ITAA 1997 40-100(5)
ITAA 1997 40-100(6)(b)
ITAA 1997 40-102(4)
ITAA 1997 40-102(4A)
ITAA 1997 40-105
ITAA 1997 40-110
TAA 1953
Other References:
Income Tax (Effective Life of Depreciating Assets) Amendment Determination 2014 (No. 1)
| Date: | Version: | Change: | |
| 25 June 2014 | Original ruling | ||
| 16 July 2014 | Consolidated ruling | Erratum | |
| You are here | 6 August 2014 | Consolidated ruling | Addendum |