Taxation Ruling
TR 2018/4
Income tax: effective life of depreciating assets (applicable from 1 July 2018)
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W
| W | |||
| ASSET |
LIFE
(YEARS) |
REVIEWED |
DATE OF
APPLICATION |
| Warehouse and distribution centre equipment and machines: | |||
| Automated storage and retrieval machines | 20 | * | 1 Jul 2011 |
| Balers | 15 | * | 1 Jul 2011 |
| Battery assets for warehouse vehicles (including pallet trucks and forklifts): | |||
| Batteries (detachable for recharging) | 5 | * | 1 Jul 2011 |
| Battery chargers: | |||
| Forklifts | 11 | * | 1 Jul 2011 |
| Other | 10 | * | 1 Jul 2011 |
| Handling assets: | |||
| Battery tuggers | 10 | * | 1 Jul 2011 |
| Racking roller beds | 15 | * | 1 Jul 2011 |
| Transfer carts | 10 | * | 1 Jul 2011 |
| Washers | 10 | * | 1 Jul 2011 |
| Carts/buggies | 15 | * | 1 Jul 2011 |
| Conveyors | 15 | * | 1 Jul 2011 |
| Dock levellers, pallet jacks, pallet trucks and scissor lifts - see Table B Loading bay assets | |||
| Door control and motor drive systems (incorporating chains, controls, motor and sensors, but excluding doors): | |||
| External | 20 | * | 1 Jul 2011 |
| Internal | 10 | * | 1 Jul 2011 |
| Floor sweepers/scrubbers | 10 | * | 1 Jul 2011 |
| Forklift attachments: | |||
| Cages | 10 | * | 1 Jul 2011 |
| Push pull units | 11 | * | 1 Jul 2011 |
| Inflatable dock bags/seals/shelters | 10 | * | 1 Jul 2011 |
| Packaging machines and wrapping machines - see Table B Packaging machines | |||
| Pallet assets: | |||
| Dispensers | 15 | * | 1 Jul 2011 |
| Lift tables | 10 | * | 1 Jul 2011 |
| Racks | 20 | * | 1 Jul 2011 |
| Radio frequency terminal assets: | |||
| Barcode readers/scanners | 5 | * | 1 Jul 2011 |
| Portable/handheld and vehicle mounted terminal devices | 4 | * | 1 Jul 2011 |
| Refrigeration assets - see Table B Refrigeration assets | |||
| Roll cages | 10 | * | 1 Jul 2011 |
| Trolleys | 10 | * | 1 Jul 2011 |
| Voice picking assets: | |||
| Battery chargers | 4 | * | 1 Jul 2011 |
| Headsets | 4 | * | 1 Jul 2011 |
| Terminals (on person) | 4 | * | 1 Jul 2011 |
| Waste compactors (used for cardboard and plastic): | |||
| Electric | 15 | * | 1 Jul 2011 |
| Hydraulic | 20 | * | 1 Jul 2011 |
| Waste storage and disposal bins (including crane bins, hooklift bins, skip bins and other industrial use bins) | 10 | * | 1 Jul 2016 |
| Weighbridges | 20 | * | 1 Jul 2014 |
| Welders: | |||
| Diesel | 10 | * | 1 Jul 2008 |
| Electric | 5 | * | 1 Jul 2008 |
| Oxygen welders and cutters | 10 | * | 1 Jul 2014 |
| Window blinds | 15 | * | 1 Jul 2016 |
Footnotes
All legislative references are to the ITAA 1997 unless otherwise indicated.
In some circumstances, the effective life of an asset is not relevant in determining the deduction available under Division 40 for decline in value of the asset. Examples include allocating assets to a pool or where an immediate deduction is available.
A specified purpose is a taxable purpose, the purpose of producing exempt income or non-assessable non-exempt income, or the purpose of conducting research and development activities (assuming that this is reasonably likely).
For the purposes of Division 40.
The Government has proposed to allow taxpayers to self-assess the effective life of certain intangible assets that they start to hold on or after 1 July 2016. However, the proposed measure has not yet become law at the time this Ruling was prepared.
A capped effective life of 6 ⅔ years is available - see subsection 40-102(5).
A capped effective life of 6 ⅔ years is available for harvesters listed in this sub-category (assets marked with #) - see subsection 40-102(5).
Primary producers may deduct capital expenditure incurred from 7.30pm (AEST), 12 May 2015 on a fodder storage asset over three years - see sections 40-515 and 40-548, and subsections 40-525(3) and 40-555(4).
Primary producers may deduct capital expenditure incurred from 7.30pm (AEST), 12 May 2015 on a fodder storage asset over three years - see sections 40-515 and 40-548, and subsections 40-525(3) and 40-555(4).
A capped effective life of 6 ⅔ years is available - see subsection 40-102(5).
A capped effective life of 6 ⅔ years is available - see subsection 40-102(5).
A capped effective life of 6 ⅔ years is available - see subsection 40-102(5).
A capped effective life of 6 ⅔ years is available - see subsection 40-102(5).
A capped effective life of 6 ⅔ years is available - see subsection 40-102(5).
A capped effective life of 6 ⅔ years is available - see subsection 40-102(5).
A capped effective life of 6 ⅔ years is available - see subsection 40-102(5).
A capped effective life of 6 ⅔ years is available where applicable (assets marked with #) - see subsection 40-102(5).
Primary producers may deduct capital expenditure incurred from 7.30pm (AEST), 12 May 2015 on a fodder storage asset over three years - see sections 40-515 and 40-548, and subsections 40-525(3) and 40-555(4).
Primary producers may deduct capital expenditure incurred from 7.30pm (AEST), 12 May 2015 on a fodder storage asset over three years - see sections 40-515 and 40-548, and subsections 40-525(3) and 40-555(4).
Primary producers may deduct capital expenditure incurred from 7.30pm (AEST), 12 May 2015 on a fodder storage asset over three years - see sections 40-515 and 40-548, and subsections 40-525(3) and 40-555(4).
Primary producers may deduct capital expenditure incurred from 7.30pm (AEST), 12 May 2015 on a fodder storage asset over three years - see sections 40-515 and 40-548, and subsections 40-525(3) and 40-555(4).
Primary producers may deduct capital expenditure incurred from 7.30pm (AEST), 12 May 2015 on a fodder storage asset over three years - see sections 40-515 and 40-548, and subsections 40-525(3) and 40-555(4).
Defined as water containing in excess of 10 parts of salt per 1,000 parts of water.
A capped effective life of 15 years is available where applicable (assets marked with #) - see subsection 40-102(5).
A capped effective life of 15 years is available for assets marked with #, except offshore platforms - see subsection 40-102(5).
A capped effective life of 20 years is available - see subsection 40-102(5).
A capped effective life of 15 years is available where applicable (assets marked with #) - see subsection 40-102(5).
A capped effective life of 10 years is available - see subsection 40-102(4)
A capped effective life of 20 years is available where applicable (assets marked with #) - see subsection 40-102(5).
A capped effective life of 20 years is available where applicable (assets marked with #) - see subsection 40-102(5).
A capped effective life of 7 ½ years may be available - see subsection 40-102(4).
A capped effective life of 7 ½ years is available - see subsection 40-102(4).
A hire car is a passenger car hired with a driver, not being a taxi.
A rental car is a passenger car hired, leased or rented for short-term use without a driver.
A capped effective life of 7 ½ years is available - see subsection 40-102(4).
A capped effective life of 7 ½ years is available - see subsection 40-102(4).
A capped effective life of 10 years is available - see subsection 40-102(4).
A capped effective life of 7 ½ years is available - see subsection 40-102(4).
A capped effective life of 10 years is available - see subsection 40-102(4).
A capped effective life of 8 years is available - see subsection 40-102(4).
A capped effective life of 10 years is available - see subsection 40-102(4).
A capped effective life of 8 years is available - see subsection 40-102(4).
A rental car is a passenger car hired, leased or rented for short-term use without a driver.
From 1 July 2017 investors in residential investment properties will not be able to deduct the decline in value of any plant and equipment purchased by previous owners of the property. This measure applies to existing plant and equipment in residential properties purchased after 7:30pm (AEST), 9 May 2017.
A capped effective life of 7 ½ years may be available - see subsection 40-102(4).
A specified purpose is a taxable purpose, the purpose of producing exempt income or non-assessable non-exempt income, or the purpose of conducting R & D activities (assuming that this is reasonably likely).
A capped effective life of 10 years is available - see subsection 40-102(4).
A capped effective life of 8 years is available - see subsection 40-102(4).
A capped effective life of 10 years is available - see subsection 40-102(4).
A capped effective life of 8 years is available - see subsection 40-102(4).
A capped effective life of 7 ½ years is available - see subsection 40-102(4).
A hire car is a passenger car hired with a driver, not being a taxi.
A rental car is a passenger car hired, leased or rented for short-term use without a driver.
A capped effective life of 7 ½ years is available - see subsection 40-102(4).
A capped effective life of 7 ½ years is available - see subsection 40-102(4).
A capped effective life of 10 years is available - see subsection 40-102(4).
A capped effective life of 7 ½ years is available - see subsection 40-102(4).
A specified purpose is a taxable purpose, the purpose of producing exempt income or non-assessable non-exempt income, or the purpose of conducting R & D activities (assuming that this is reasonably likely).
References
ATO references:
NO 1-B8V6TGB
Related Rulings/Determinations:
TR 2018/4W
TR 2013/4
TR 2014/4
TR 2015/2
TR 2016/1
TR 2017/2
Subject References:
depreciation
depreciation rate
effective life
Legislative References:
ITAA 1997
ITAA 1997 Div 40
ITAA 1997 40-25
ITAA 1997 40-70(1)
ITAA 1997 40-72(1)
ITAA 1997 40-75(1)
ITAA 1997 40-95
ITAA 1997 40-95(4)
ITAA 1997 40-95(5)
ITAA 1997 40-95(7)
ITAA 1997 40-100
ITAA 1997 40-100(5)
ITAA 1997 40-100(6)(b)
ITAA 1997 40-102
ITAA 1997 40-102(4)
ITAA 1997 40-102(4A)
ITAA 1997 40-105
ITAA 1997 40-110
ITAA 1997 40-345(2)
TAA 1953
Other References:
Income Tax (Effective Life of Depreciating Assets) Amendment Determination 2018 (No. 1)