Taxation Ruling

TR 2000/18A8 - Addendum (as at 28 June 2004)

Income tax: effective life of depreciating assets

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FOI status:

may be released

Addendum

This Addendum amends Taxation Ruling TR 2000/18 to reflect additions and deletions to Tables A and B.

Taxation Ruling TR 2000/18 is amended as follows:

1. After paragraph 56, insert

Definitions, Rental Properties

57. The terms 'Freestanding' and 'Fixed' are used to describe certain residential rental property assets listed in Table A. For the purposes of the determination of effective life for such assets they have the following meanings:

Freestanding - items designed to be portable or movable. Any attachment to the premises is only for the item's temporary stability.

Fixed - annexed or attached by any means, for example screws, nails, bolts, glue, adhesive, grout or cement, but not merely for temporary stability.

2. Delete paragraphs 61, 62, 63, 64, 75, 76, 77 and 78

3. Paragraph 72

Delete the last two sentences which read, 'A list of assets for which replacements used to apply appears in Table D. That table is for information purposes only.'

4. Paragraph 82

Delete the paragraph and replace with:

Industry bodies and interested taxpayers have been consulted during the course of the effective life reviews undertaken since 1999. An independent review panel has also checked each review process to confirm the level of industry consultation was appropriate. That panel presently comprises a representative from CPA Australia, the Corporate Tax Association, The Treasury, the Australian Valuation Office and the Australian Taxation Office.

5. Renumber paragraphs

Renumber the former paragraph 57 and all subsequent paragraphs to reflect the above changes.

6. Schedule of effective life determinations

As part of the ongoing review of the Commissioner's effective life determinations being undertaken by the Tax Office, there are periodic consolidations of Tables A and B of the schedule of effective life determinations, to reflect changes in the Commissioner's determinations.

The Commissioner has made new determinations that commence on 1 July 2004, pursuant to section 40-100 of the Income Tax Assessment Act 1997, determining the effective life of assets covered by the following descriptions:

•

fire control and alarm assets;

•

gold ore processing assets;

•

nickel ore processing assets;

•

nursing home assets;

•

optical lens grinding and contact lens manufacturing assets;

•

rental property assets;

•

security and monitoring system assets; and

•

telecommunication microwave radio assets.

These new determinations, plus other amendments to the schedule of effective life determinations including the removal of some previous determinations, and the reorganising of some previous determinations in the Tables, are incorporated in the attached consolidated Tables A and B which are contained in the new '1 July 2004 Schedule'.

7. Table F

Delete Table F.

Commissioner of Taxation
28 June 2004

Effective lives (Industry Categories)
Table A as at 1 July 2004

Effective lives (Asset Categories)
Table B as at 1 July 2004