Effective Life 2015/1

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Commonwealth of Australia

This legislative instrument has been replaced by F2017C00490

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 2016

Schedule

Table B as at 1 July 2016
Effective lives (Asset categories)

Legislation history

Amendment history