Effective Life 2015/1

---

Commonwealth of Australia

This legislative instrument has been replaced by F2021C00658

Income Tax Assessment Act 1997

made under subsection 40-100(1) of the Income Tax Assessment Act 1997.

1 Name of Determination

This Determination is the Income Tax (Effective Life of Depreciating Assets) Determination 2015.

4 Effective Life of Depreciating Assets

(1) For subsection 40-100(1) of the Income Tax Assessment Act 1997, the effective life of depreciating assets is specified in Tables A and B.

(2) If the entity deducting an amount for a depreciating asset is using the asset in an industry specified in Table A, Tables A and B are to be used as follows:

(a)

if the asset corresponds exactly to a description in Table A for the industry in which the asset is used, its effective life is the life specified for that asset;

(b)

if the asset:

(i)

does not correspond exactly to a description in Table A for the industry in which the asset is used; but

(ii)

satisfies the general description of asset used in the functional process of that industry -

its effective life is the life specified in Table A for that class of asset;

(c)

if:

(i)

paragraphs (a) and (b) do not apply to the asset; and

(ii)

the asset corresponds to a description in Table B -

its effective life is the life specified with that description.

Note Table A is intended to describe assets:

•

that are peculiar to a particular industry; or

•

for which a particular effective life is appropriate because of the way in which a particular industry uses the asset.

The industry headings in Table A have, where possible, been drawn from the classification subject categories in the Australian and New Zealand Standard Industrial Classification (ANZSIC) Codes.

(3) If:

(a)

the entity deducting an amount for a depreciating asset is not using the asset in an industry specified in Table A; and

(b)

the asset corresponds to a description in Table B - the effective life of the asset is the life specified with that description.

Note If Tables A and B are not used, or cannot be used because:

•

the asset is not used in an industry specified in Table A; and

•

Table B has no description that corresponds to the asset -

the way to work out the effective life of the asset is explained in section 40-105 of the Income Tax Assessment Act 1997.

5 Definitions - meaning of symbols used in Tables A and B

An asterisk (*) in the third column of Tables A and B indicates the corresponding assets have been reviewed to date as part of the ongoing review of the Commissioner's effective life determinations.

A hash (#) in the third column of Table A or B indicates a capped life is available for the depreciating assets under section 40-102 of the Income Tax Assessment Act 1997.

Schedule

Table A as at 1 July 2020

Schedule

Table B as at 1 July 2020
Effective lives (Asset categories)

Legislation history

Amendment history

Editorial changes

In preparing this compilation for registration, the following kinds of editorial change(s) were made under the Legislation Act 2003.

Table A, industry category AGRICULTURE, FORESTERY AND FISHING (01110 to 05290), sub-category Coffee, olive and tree nut growing (01370, 01390 to 01590)

Kind of editorial change

Give effect to the misdescribed amendment as intended

Details of editorial change

Schedule 1 item 2 of the Income Tax (Effective Life of Depreciating Assets) Amendment Determination (No 2) 2020 provides as follows:

[2] Table A, industry category AGRICULTURE, FORESTERY AND FISHING (01110 to 05290), sub-category Coffee, olive and tree nut growing (01370, 01390 to 01590)

Omit

Substitute

Table A, industry category AGRICULTURE, FORESTERY AND FISHING (01110 to 05290), sub-category Coffee, olive and tree nut growing (01370, 01390 to 01590) does not appear. However, Table A, industry category AGRICULTURE, FORESTRY AND FISHING (01110 to 05290), sub-category Coffee, olive and tree nut growing (01370, 01390 and 01590) does appear.

This compilation was editorially changed to omit and substitute the table row and give effect to the misdescribed amendment as intended.