Taxation Laws Amendment Act (No. 4) 2002 (53 of 2002)
Schedule 4 Effective life of depreciating assets
Part 1 Amendments
Income Tax Assessment Act 1997
5 After section 40-100
Insert:
40-102 Capped life of certain depreciating assets
(1) If this section applies to a *depreciating asset, the effective life of the asset is the period (the capped life) that applies to the asset under subsection (4) or (5) at the relevant time (which is worked out using subsection (3)).
Working out if this section applies
(2) This section applies to a *depreciating asset if:
(a) you choose, under paragraph 40-95(1)(a), to use an *effective life determined by the Commissioner for the asset under section 40-100; and
(b) your choice is limited to a determination in force at the time mentioned in paragraph 40-95(2)(a) or (c); and
(c) a *capped life applies to the asset under subsection (4) or (5) at the relevant time (which is worked out using subsection (3)); and
(d) the capped life is shorter than the effective life mentioned in paragraph (a).
(3) For the purposes of this section, the relevant time is:
(a) the *start time of the *depreciating asset if:
(i) paragraph 40-95(2)(c) applies to you; or
(ii) paragraph 40-95(2)(a) applies to you and a *capped life does not apply to the asset under subsection (4) or (5) at the time mentioned in that paragraph; or
(iii) paragraph 40-95(2)(a) applies to you and the capped life that applies to the asset under subsection (4) or (5) at the time mentioned in that paragraph is longer than the capped life that applies to the asset at its start time; or
(b) if paragraph (a) does not apply - the time mentioned in paragraph 40-95(2)(a).
Capped life
(4) If the *depreciating asset corresponds exactly to the description in column 2 of the table, the capped life of the asset is the period specified in column 3 of the table.
|
Capped life of certain depreciating assets |
||
|---|---|---|
|
Item |
Kind of depreciating asset |
Period |
|
1 |
Aeroplane used predominantly for agricultural spraying or agricultural dusting |
8 years |
|
2 |
Aeroplane to which item 1 does not apply |
10 years |
|
3 |
Helicopter used predominantly for mustering, agricultural spraying or agricultural dusting |
8 years |
|
4 |
Helicopter to which item 3 does not apply |
10 years |
(5) If the *depreciating asset is of a kind described in column 2 of the table and is used in the industry specified in column 3 of the table for the asset, the capped life of the asset is the period specified in column 4 of the table.
|
Capped life of certain depreciating assets used in specified industries |
|||
|---|---|---|---|
|
Item |
Kind of depreciating asset |
Industry in which the asset is used |
Period |
|
1 |
Gas transmission asset |
Gas supply |
20 years |
|
2 |
Gas distribution asset |
Gas supply |
20 years |
|
3 |
Oil production asset (other than an electricity generation asset or an offshore platform) |
Oil and gas extraction |
15 years |
|
4 |
Gas production asset (other than an electricity generation asset or an offshore platform) |
Oil and gas extraction |
15 years |
|
5 |
Offshore platform |
Oil and gas extraction |
20 years |
|
6 |
Asset (other than an electricity generation asset) used to manufacture condensate, crude oil, domestic gas, liquid natural gas or liquid petroleum gas but not if the manufacture occurs in an oil refinery |
Petroleum refining |
15 years |