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).
M
| M | |||
| ASSET |
LIFE
(YEARS) |
REVIEWED |
DATE OF
APPLICATION |
| Machine tools (grinding machines, lathes, milling machines etc): | |||
| CNC and NC based machines | 10 | * | 1 Jul 2014 |
| Conventional or manual machines | 20 | * | 1 Jul 2014 |
| Mini-skid steer loaders (with a carrying capacity less than or equal to 1100 kg) | 5 | * | 1 Jul 2005 |
| Mini-skid steer loader attachments: | |||
| Others (including auger and bucket) | 5 | * | 1 Jan 2004 |
| Stump grinders | 2 | * | 1 Jan 2004 |
| Motor graders | 10 | * | 1 Jul 2002 |
| Motor vehicles and trailers: | |||
| Buses having a gross vehicle mass of more than 3.5 tonnes [51] | 15 | *# | 1 Jan 2005 |
| Cars (motor vehicles designed to carry a load of less than one tonne and fewer than 9 passengers): | |||
| Generally | 8 | * | 1 Jan 2006 |
| Hire cars [52] : | |||
| Cars used to provide basic service ride-sourcing, ride-hailing or ride-sharing services (e.g. uberX) | 8 | * | 1 Jul 2016 |
| Generally (including cars used to provide premium service ride-sourcing, ride-hailing or ride-sharing services e.g. UberBLACK) | 6 | * | 1 Jul 2016 |
| Rental cars [53] | 5 | * | 1 Jul 2016 |
| Taxis | 4 | * | 1 Jul 2015 |
| Garbage compactor trucks - see Table A Solid waste collection services (29110) | |||
| Light commercial vehicles designed to carry a load of one tonne or greater and having a gross vehicle mass of 3.5 tonnes or less [54] | 12 | *# | 1 Jan 2005 |
| Limousines: | |||
| Sedan limousines | 6 | * | 1 Jul 2016 |
| Stretch limousines | 12 | * | 1 Jul 2016 |
| Minibuses having a gross vehicle mass of 3.5 tonnes or less and designed to carry 9 or more passengers [55] | 12 | *# | 1 Jan 2005 |
| Motorcycles (including courier motorcycles and mailbox delivery motorcycles) | 7 | * | 1 Jul 2015 |
| Scooters | 3 | * | 1 Jul 2015 |
| Trailers having a gross vehicle mass greater than 4.5 tonnes [56] | 15 | *# | 1 Jan 2005 |
| Trailers having a gross vehicle mass of 4.5 tonnes or less: | |||
| Aluminium, galvanised steel, galvanised hot dipped steel and powder coated trailers | 10 | * | 1 Jul 2015 |
| Mild steel trailers (painted and unpainted) | 5 | * | 1 Jul 2015 |
| Trucks having a gross vehicle mass greater than 3.5 tonnes (excluding off highway trucks used in mining operations) [57] | 15 | *# | 1 Jan 2005 |
| Moving walks | 20 | * | 1 Jan 2003 |
| Musical instruments and associated equipment: | |||
| Associated portable equipment (including amplifiers, microphones, speakers, mixers and music stands) | 6 ⅔ | * | 1 Jan 2001 |
| Brass instruments (including bugles, cornets, euphoniums, horns, sousaphones, trombones, trumpets and tubas) | 10 | * | 1 Jan 2001 |
| Keyboard instruments (including accordions, concertinas, organs, pianolas and pianos): | |||
| Acoustic | 10 | * | 1 Jan 2001 |
| Electric | 5 | * | 1 Jan 2001 |
| Percussion instruments (including chimes, cymbals, drums, gongs, maracas and tambourines) | 5 | * | 1 Jan 2001 |
| Stringed instruments (including banjos, basses, cellos, guitars, harps, mandolins, tiples, ukuleles, violas and violins) | 10 | * | 1 Jan 2001 |
| Woodwind instruments (including bagpipes, bassoons, clarinets, flutes, oboes, pan pipes, piccolos and recorders) | 10 | * | 1 Jan 2001 |
References
ATO references:
NO 1-SY3H7A0
Previous Rulings/Determinations:
TR 2017/2
TR 2018/4
TR 2019/5
TR 2020/3
TR 2021/3
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