Taxation Ruling
TR 2022/1
Income tax: effective life of depreciating assets (applicable from 1 July 2022)
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Please note that the PDF version is the authorised version of this ruling.This Ruling, which applies from 1 July 2022, replaces TR 2021/3 (see paragraph 6 of this Ruling for further details).
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 controls and motor drive systems (incorporating chains, controls, motors 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 |
| Working beasts and beasts of burden (including camels and horses but excluding working dogs) used in a business other than primary production | 15 | * | 1 Jul 2014 |
| Working dogs (including certified therapy dogs used by qualified therapists, detection dogs, guard dogs, performing dogs, police dogs and security dogs; but excluding assistance dogs (such as guide dogs, hearing dogs and service dogs), pet dogs, racing dogs, support dogs, and working dogs used in primary production) | 8 | * | 1 Jul 2019 |
Footnotes
All legislative references are to the Income Tax Assessment Act 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 where an asset is allocated to a pool and where an immediate deduction is available. Other provisions outside of Division 40 may also allow an immediate deduction for expenditure incurred in acquiring an asset, such as temporary full expensing available under Subdivision 40-BB of the Income Tax (Transitional Provisions) Act 1997.
A specified purpose is a taxable purpose (see subsection 40-25(7)), 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.
See subsections 40-70(1) and 40-72(1) for diminishing value and subsection 40-75(1) for prime cost.
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 be entitled to an immediate deduction for capital expenditure incurred on a fodder storage asset if the asset was first used or installed ready for use on or after 19 August 2018 - see sections 40-515 and 40-548, and subsections 40-525(3) and 40-555(4).
Primary producers may be entitled to an immediate deduction for capital expenditure incurred on a fodder storage asset if the asset was first used or installed ready for use on or after 19 August 2018 - 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 where applicable (assets marked with #) - 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).
Primary producers may be entitled to an immediate deduction for capital expenditure incurred on a fodder storage asset if the asset was first used or installed ready for use on or after 19 August 2018 - see sections 40-515 and 40-548, and subsections 40-525(3) and 40-555(4).
Primary producers may be entitled to an immediate deduction for capital expenditure incurred on a fodder storage asset if the asset was first used or installed ready for use on or after 19 August 2018 - see sections 40-515 and 40-548, and subsections 40-525(3) and 40-555(4).
Primary producers may be entitled to an immediate deduction for capital expenditure incurred on a fodder storage asset if the asset was first used or installed ready for use on or after 19 August 2018 - see sections 40-515 and 40-548, and subsections 40-525(3) and 40-555(4).
Primary producers may be entitled to an immediate deduction for capital expenditure incurred on a fodder storage asset if the asset was first used or installed ready for use on or after 19 August 2018 - see sections 40-515 and40-548, and subsections 40-525(3) and 40-555(4).
Primary producers may be entitled to an immediate deduction for capital expenditure incurred on a fodder storage asset if the asset was first used or installed ready for use on or after 19 August 2018 - see sections 40-515 and 40-548, and subsections 40-525(3) and 40-555(4).
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, certain investors in residential properties will not be able to deduct the decline in value of plant and equipment that has been used previously by an entity (other than as trading stock), subject to limited exceptions. This measure applies to plant and equipment acquired at or after 7:30 pm 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-SY3H7A0
Previous Rulings/Determinations:
TR 2017/2
TR 2018/4
TR 2019/5
TR 2020/3
TR 2021/3
ISSN: 2205-6122
Subject References:
depreciation
depreciation rate
effective life
Legislative References:
ITAA 1997 Div 40
ITAA 1997 40-25
ITAA 1997 40-25(7)
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 40-102(5)
ITAA 1997 40-105
ITAA 1997 40-110
ITAA 1997 40-345(2)
IT(TP)A 1997 Subdiv 40-BB
Other References:
Income Tax (Effective Life of Depreciating Assets) Amendment Determination (No 1) 2022