Taxation Ruling
TR 2015/2
TR 2015/2 - Income tax: effective life of depreciating assets (applicable from 1 July 2015)
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Please note that the PDF version is the authorised version of this ruling.This Ruling, which applies from 1 July 2015, replaces TR 2014/4 (see paragraph 5 of this Ruling for further details).This document has changed over time. View its history.
Appendix 2 - Detailed contents list
60. The following is a detailed contents list for this Ruling.
| Paragraph | |
| Executive summary | 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 | 14 |
| Appendix 1 - Explanation | 15 |
| Overview | 15 |
| How does the Commissioner determine the effective life of a depreciating asset? | 21 |
| Physical life | 24 |
| Manufacturing specifications/Engineering information | 27 |
| Use of the asset in a particular industry | 28 |
| Use of the asset in different industries | 29 |
| Industry standards | 30 |
| Repairs and maintenance | 32 |
| Retention period | 32 |
| Obsolescence | 34 |
| Scrapping or abandonment practices | 41 |
| Lease periods | 43 |
| Financial analysis | 44 |
| Market value | 45 |
| Working out your own effective life | 46 |
| Capped lives | 50 |
| Decline in value calculation | 55 |
| New and reviewed effective lives | 56 |
| Important terms and definitions in Tables A and B | 57 |
| Appendix 2 - Detailed contents list | 60 |
| Schedule - ANZSIC categories | Page 15 |
| Schedule - Table A | Page 19 |
| Schedule - Table B | Page 236 |
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Not issued as a draft
References
ATO references:
NO 1-6GI83JW
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
TR 2014/4
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) Determination 2015
| Date: | Version: | Change: | |
| You are here | 24 June 2015 | Consolidated ruling |