Taxation Ruling

TR 2014/4

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

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This Ruling, which applies from 1 July 2014, replaces TR 2013/4 (see paragraph 5 of this Ruling for further details).

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TR 2014/4 - Effective lives (Industry Categories)
Table A as at 1 July 2014 - CONSTRUCTION

CONSTRUCTION ( 30110 to 32990)

ASSET	LIFE (YEARS)	REVIEWED	DATE OF APPLICATION
Air compression assets:
Air compression assets generally (including air compressors, air dryers and air receivers)	20	*	1 Jul 2014
Air compressors (portable):
Compressors - reciprocating	7	*	1 Jul 2014
Compressors - rotary screw	10	*	1 Jul 2014
Backhoe loaders	9	*	1 Jul 2002
Bending machines (bar, angle or rod)	10	*	1 Jul 2008
Block and brick elevators (portable)	10	*	1 Jul 2008
Chain blocks, rod shears, jacks, etc	13 ⅓		1 Jan 2001
Compaction:
Compactors - flat plate	8	*	1 Jul 2008
Compactors - vertical rammer	6	*	1 Jul 2008
Concreting assets:
Brick and paving saws	5	*	1 Jul 2008
Concrete demolition saws	3	*	1 Jul 2008
Concrete kibble buckets	15	*	1 Jul 2008
Concrete mixers	4	*	1 Jul 2008
Concrete surface preparation assets (including floor grinders, planers and scarifers)	5	*	1 Jul 2008
Concrete trowels:
Walk behind	5	*	1 Jul 2008
Ride on	7	*	1 Jul 2008
Concrete vibrating screeders	5	*	1 Jul 2008
Concrete vibrators:
Brushcutter style	5	*	1 Jul 2008
Drive units	6	*	1 Jul 2008
Flexible shaft pumps	6	*	1 Jul 2008
Vibrating shaft	3	*	1 Jul 2008
Concrete wheeled saws	6	*	1 Jul 2008
Concreting plant:
Buggies or dumpers (motorised)	5		1 Jan 2001
Hoppers, skips and hoist buckets	10		1 Jan 2001
Mobile concrete pumping units	6 ⅔		1 Jan 2001
Cranes (mobile):
Light and medium	15	*	1 Jul 2002
Heavy (over 15.24 tonnes lift)	20	*	1 Jul 2002
Tower and hoists	10		1 Jan 2001
Dozers/Front end loaders	9	*	1 Jul 2002
Forklifts	11	*	1 Jul 2002
Formwork, beams and props, steel	10	*	1 Jul 2008
Hydraulic excavators	10	*	1 Jul 2002
Levels:
Dumpy	7	*	1 Jul 2008
Laser beam	10	*	1 Jul 2008
Lift slab assets (incorporating spreader bars, clutches, pulleys and cables)	5	*	1 Jul 2008
Mini excavators	8	*	1 Jul 2002
Motor graders	10	*	1 Jul 2002
Pavers	12	*	1 Jul 2002
Power supply assets:
Generators, portable (incorporating attached engine management and generator monitoring instruments):
Diesel	10	*	1 Jul 2008
Petrol	5	*	1 Jul 2008
Power tools:
Chain saws	3	*	1 Jul 2008
Hand tools:
Air	5	*	1 Jul 2008
Battery	3	*	1 Jul 2008
Electric	5	*	1 Jul 2008
Jack hammers:
Air	7	*	1 Jul 2008
Electric	3	*	1 Jul 2008
Nail guns - air	3	*	1 Jul 2008
Profilers	10	*	1 Jul 2002
Pumps	10		1 Jan 2001
Road rollers	15	*	1 Jul 2002
Saws, bench and mitre, portable	7	*	1 Jul 2008
Scrapers	8	*	1 Jul 2002
Skid steer loaders	7	*	1 Jul 2002
Stabiliser recyclers	12	*	1 Jul 2002
Telescopic handlers	10	*	1 Jul 2002
Tool carriers	10	*	1 Jul 2002
Track loaders	9	*	1 Jul 2002
Traffic management assets (use the relevant lives given under Table A Rental and hiring services (66110 to 67200), whether or not the assets are in fact hired or leased)
Welders:
Diesel	10	*	1 Jul 2008
Electric	5	*	1 Jul 2008
Wheel loaders	8	*	1 Jul 2002
Winches	13 ⅓		1 Jan 2001

*Other heavy and civil engineering construction n.e.c.* *(31099)*
ASSET	LIFE (YEARS)	REVIEWED	DATE OF APPLICATION
Automatic welding machines (used at sea in construction of submarine pipelines)	10		1 Jan 2001

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
You are here	16 July 2014	Consolidated ruling	Erratum
	6 August 2014	Consolidated ruling	Addendum

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