Taxation Ruling

TR 2014/4

TR 2014/4 - Income tax: effective life of depreciating assets (applicable from 1 July 2014)

This version is no longer current. Please follow this link to view the current version.

  • Please note that the PDF version is the authorised consolidated version of this ruling and amending notices.
    This Ruling, which applies from 1 July 2014, replaces TR 2013/4 (see paragraph 5 of this Ruling for further details).
    This document has changed over time. View its history.

Appendix 2 - Detailed contents list

58. The following is a detailed contents list for this Ruling.

Paragraph
What this Ruling is about 1
Previous Ruling 5
Ruling 6
Effective life determination 6
Effective life applicable 8
How to use Tables A and B 10
Date of effect 13
Appendix 1 - Explanation 14
Overview 14
How does the Commissioner determine the effective life of a depreciating asset? 19
Physical life 22
Manufacturing specifications/Engineering information 25
Use of the asset in a particular industry 26
Use of the asset in different industries 27
Industry standards 28
Repairs and maintenance 30
Retention period 32
Obsolescence 33
Scrapping or abandonment practices 39
Lease periods 41
Financial analysis 42
Market value 43
Working out your own effective life 44
Capped lives 48
Decline in value calculation 53
New and reviewed effective lives 54
Important terms and definitions in Tables A and B 55
Appendix 2 - Detailed contents list 58
Schedule - ANZSIC categories Page 14
Schedule - Industry listing Page 18
Schedule - Table A Page 28
Schedule - Table B Page 235

© AUSTRALIAN TAXATION OFFICE FOR THE COMMONWEALTH OF AUSTRALIA

You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).

Not issued as a draft

References

ATO references:
NO 99/132027; 2000/20567; 2003/11601; 2004/17815; 2005/6504; 2005/18073; 2006/25212; 2007/7796; 2008/9394; 2009/5704; 1-20KCCA6; 1-2Z8ZAX4; 1-3VCCZ0O; 1-4NMTK3G; 1-5EJ20VG

ISSN: 1039-0731

Related Rulings/Determinations:

IT 2685
TR 2000/18
TR 2006/5
TR 2006/15
TR 2007/3
TR 2008/4
TR 2009/4
TR 2010/2
TR 2011/2
TR 2012/2
TR 2013/4

Subject References:
capped lives
determination of effective life
decline in value
depreciating assets
effective life
effective life determination

Legislative References:
ITAA 1997
ITAA 1997 Div 40
ITAA 1997 40-70(1)
ITAA 1997 40-72(1)
ITAA 1997 40-75(1)
ITAA 1997 40-95
ITAA 1997 40-100
ITAA 1997 40-100(5)
ITAA 1997 40-100(6)(b)
ITAA 1997 40-102(4)
ITAA 1997 40-102(4A)
ITAA 1997 40-105
ITAA 1997 40-110
TAA 1953

Other References:
Income Tax (Effective Life of Depreciating Assets) Amendment Determination 2014 (No. 1)

TR 2014/4 history
  Date: Version: Change:
  25 June 2014 Original ruling  
  16 July 2014 Consolidated ruling Erratum
You are here 6 August 2014 Consolidated ruling Addendum

Copyright notice

© Australian Taxation Office for the Commonwealth of Australia

You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).