Taxation Ruling

TR 2014/4

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

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  • 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).
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TR 2014/4 - Effective lives (Industry Categories)
Table A as at 1 July 2014 - RENTAL, HIRING AND REAL ESTATE SERVICES

RENTAL, HIRING AND REAL ESTATE SERVICES
( 66110 to 67200 )
 
Rental and hiring services ( except real estate )
( 66110 to 67200 )
ASSET LIFE
(YEARS) 		REVIEWED DATE OF
APPLICATION
If the asset is hired or leased to and used predominantly by a particular industry and not listed below see the entry under Table A for that industry.      
Air Compressors:      
        Compressors - reciprocating 7   *   1   Jul   2005
        Compressors - rotary screw 10   *   1   Jul   2005
Compaction:      
        Compactors - flat plate 8   *   1   Jul   2005
        Compactors - vertical rammer 6   *   1   Jul   2005
Concreting assets:      
        Brick/paving saws 5   *   1   Jul   2005
        Concrete demolition saws 3   *   1   Jul   2005
        Concrete kibble buckets 15   *   1   Jul   2005
        Concrete mixers 4   *   1   Jul   2008
        Concrete trowels:      
                Ride on 7   *   1   Jul   2008
                Walk behind 5   *   1   Jul   2008
        Concrete surface preparation assets (including floor grinders, planers and scarifers) 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 shafts 3   *   1   Jul   2008
Concrete wheeled saws 6   *   1   Jul   2005
Generators:      
        Cables 5   *   1   Jul   2005
        Distribution boards 10   *   1   Jul   2005
        Diesel 10   *   1   Jul   2005
        Petrol 5   *   1   Jul   2005
        Generator with attached lighting plant 10   *   1   Jul   2005
Household assets:      
        Clothes dryers 5   *   1   Jan   2006
        Digital video display (DVD) players 5   *   1   Jan   2006
        Dishwashers 8   *   1   Jan   2006
        Evaporative coolers, portable 5   *   1   Jan   2006
        Freezers 6   *   1   Jan   2006
        Microwave ovens 6   *   1   Jan   2006
        Refrigerators 6   *   1   Jan   2006
        Stereo systems (incorporating amplifiers, cassette players, compact disc players, radios and speakers) 5   *   1   Jan   2006
        Surround sound systems (incorporating audio-video receivers and speakers) 5   *   1   Jan   2006
        Television sets 8   *   1   Jan   2006
        Vacuum cleaners, portable 5   *   1   Jan   2006
        Video cassette recorder systems (VCR) 5   *   1   Jan   2006
        Washing machines 6   *   1   Jan   2006
Portable structures (sheds, site office trailers, portable toilets and washrooms etc) used for a temporary period in offsite locations (eg construction sites) 10   *   1   Jul   2014
Power tools:      
        Chainsaws 3   *   1   Jul   2005
        Hand tools - air 5   *   1   Jul   2005
        Hand tools - battery 3   *   1   Jul   2008
        Hand tools - electric 5   *   1   Jul   2005
        Jackhammers - air 7   *   1   Jul   2005
        Jackhammers - electric 3   *   1   Jul   2005
        Nail guns - air 3   *   1   Jul   2005
Traffic management assets:      
        Crash prevention assets:      
                Barriers:      
                        Concrete 30   *   1   Jan   2006
                        Plastic 5   *   1   Jan   2006
                Crash attenuators (truck mounted) 10   *   1   Jan   2006
        Road marking assets:      
                < 100 litre capacity 5   *   1   Jan   2006
                100 to 500 litre capacity 9   *   1   Jan   2006
                > 500 litre capacity 11   *   1   Jan   2006
                Line grinders (walk behind) 5   *   1   Jan   2006
        Traffic management signs:      
                Arrow boards 10   *   1   Jan   2006
                Speed observation signs 10   *   1   Jan   2006
                Traffic lights - mobile 10   *   1   Jan   2006
                Variable message signs 10   *   1   Jan   2006
        Static signage (including safety cones, barricades, warning signs and bollards) 3   *   1   Jan   2006
Video recorder or equipment hiring 6 ⅔   1   Jan   2001
Video tapes and games hiring ½   *   1   Jan   2001
Welders:      
        Diesel 10   *   1   Jul   2005
        Electric 5   *   1   Jul   2005
 
Note: Where the terms 'freestanding' and 'fixed' are used in entries for residential property operators, they have the following meaning. 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
Residential property operators
( 67110 )
ASSET LIFE
(YEARS) 		REVIEWED DATE OF
APPLICATION
Assets generally:      
        Air conditioning assets (excluding ducting, pipes and vents):      
                Air handling units 20   *   1   Jul   2003
                Chillers:      
                        Absorption 25   *   1   Jul   2003
                        Centrifugal 20   *   1   Jul   2003
                        Volumetrics (including reciprocating, rotary, screw, scroll):      
                                Air-cooled 15   *   1   Jul   2003
                                Water-cooled 20   *   1   Jul   2003
                Condensing sets 15   *   1   Jul   2003
                Cooling towers 15   *   1   Jul   2003
                Damper motors (including variable air volume box controller) 10   *   1   Jul   2003
                Fan coil units (connected to condensing set) 15   *   1   Jul   2003
                Mini split systems up to 20KW (including ceiling, floor and high wall split system) 10   *   1   Jul   2003
                Packaged air conditioning units 15   *   1   Jul   2003
                Pumps 20   *   1   Jul   2003
                Room units 10   *   1   Jul   2003
        Ceiling fans 5   *   1   Jul   2004
        Clocks, electric 10   *   1   Jul   2004
        Digital video display (DVD) players 5   *   1   Jul   2004
        Door closers 10   *   1   Jul   2004
        Door stops, freestanding 10   *   1   Jul   2004
        Escalators (machinery and moving parts) 20   *   1   Jan   2003
        Evaporative coolers:      
                Fixed (excluding ducting and vents) 20   *   1   Jul   2005
                Portable 10   *   1   Jul   2005
        Floor coverings (removable without damage):      
                Carpet 10   1   Jan   2001
                Floating timber 15   *   1   Jul   2004
                Linoleum 10   1   Jan   2001
                Vinyl 10   1   Jan   2001
        Furniture, freestanding 13 ⅓   1   Jan   2001
        Garbage bins 10   *   1   Jul   2004
        Garbage compacting systems (excluding chutes) 6 ⅔   1   Jan   2001
        Generators 20   1   Jan   2001
        Gym assets:      
                Cardiovascular 5   *   1   Jul   2004
                Resistance 10   *   1   Jul   2004
        Hand dryers, electrical 10   1   Jan   2001
        Heaters:      
                Fixed:      
                        Electric 15   *   1   Jul   2004
                        Gas:      
                                Ducted central heating unit 20   *   1   Jul   2004
                                Other 15   *   1   Jul   2004
                Freestanding 15   *   1   Jul   2004
        Hot water systems (excluding piping):      
                Electric 12   *   1   Jul   2004
                Gas 12   *   1   Jul   2004
                Solar 15   *   1   Jul   2004
        Intercom system assets 10   *   1   Jul   2004
        Lifts (including hydraulic and traction lifts) 30   *   1   Jan   2003
        Lights:      
                Fittings (excluding hardwired) 5   *   1   Jul   2004
                Freestanding 5   *   1   Jul   2004
                Shades, removable 5   *   1   Jul   2004
        Linen 5   *   1   Jul   2004
        Master antenna television (MATV) assets:      
                Amplifiers 10   *   1   Jul   2004
                Modulators 10   *   1   Jul   2004
                Power sources 10   *   1   Jul   2004
        Mirrors, freestanding 15   *   1   Jul   2004
        Radios 10   1   Jan   2001
        Rugs 7   *   1   Jul   2004
        Solar power generating system assets 20   *   1   Jul   2004
        Stereo systems (incorporating amplifiers, cassette players, compact disc players, radios and speakers) 7   *   1   Jul   2004
        Surround sound systems (incorporating audio-video receivers and speakers) 10   *   1   Jul   2004
        Telecommunications assets:      
                Cordless phones 4   *   1   Jul   2004
                PABX computerised assets 10   *   1   Jul   2004
                Telephone hand sets 10   *   1   Jul   2004
        Television antennas, freestanding 5   *   1   Jul   2004
        Television sets 10   *   1   Jul   2004
        Vacuum cleaners:      
                Ducted:      
                        Hoses 10   *   1   Jul   2004
                        Motors 10   *   1   Jul   2004
                        Wands 10   *   1   Jul   2004
                Portable 10   1   Jan   2001
        Ventilation fans 20   *   1   Jul   2004
        Video cassette recorder systems (VCR) 5   *   1   Jul   2004
        Water pumps 20   1   Jan   2001
        Window blinds, internal 10   *   1   Jul   2004
        Window curtains 6   *   1   Jul   2004
        Window shutters, automatic:      
                Controls 10   *   1   Jul   2004
                Motors 10   *   1   Jul   2004
Bathroom assets:      
        Accessories, freestanding (including shower caddies, soap holders, toilet brushes) 5   *   1   Jul   2004
        Exhaust fans (including light/heating) 10   *   1   Jul   2004
        Heated towel rails, electric 10   *   1   Jul   2004
        Shower curtains (excluding curtain rods and screens) 2   *   1   Jul   2004
        Spa bath pumps 20   *   1   Jul   2004
Fire control assets:      
        Alarms:      
                Heat 6   *   1   Jul   2004
                Smoke 6   *   1   Jul   2004
        Detection and alarm systems:      
                Alarm bells 12   *   1   Jul   2004
                Detectors (including addressable manual call points, heat, multi type and smoke) 20   *   1   Jul   2004
                Fire indicator panels 12   *   1   Jul   2004
        Emergency warning and intercommunication systems (EWIS):      
                Master emergency control panels 12   *   1   Jul   2004
                Speakers 12   *   1   Jul   2004
                Strobe lights 12   *   1   Jul   2004
                Warden intercom phone 12   *   1   Jul   2004
        Extinguishers 15   *   1   Jul   2004
        Hoses and nozzles 10   *   1   Jul   2004
        Pumps (including diesel and electric) 25   *   1   Jul   2004
        Stair pressurisation assets:      
                A C variable speed drives 10   *   1   Jul   2004
                Pressurisation and extraction fans 25   *   1   Jul   2004
                Sensors 10   *   1   Jul   2004
Kitchen assets:      
        Cook tops 12   *   1   Jul   2004
        Crockery 5   *   1   Jul   2004
        Cutlery 5   *   1   Jul   2004
        Dishwashers 10   *   1   Jul   2004
        Freezers 12   *   1   Jul   2004
        Garbage disposal units 10   *   1   Jul   2004
        Microwave ovens 10   *   1   Jul   2004
        Ovens 12   *   1   Jul   2004
        Range hoods 12   *   1   Jul   2004
        Refrigerators 12   *   1   Jul   2004
        Stoves 12   *   1   Jul   2004
        Water filters, electrical 15   *   1   Jul   2004
Laundry assets:      
        Clothes dryers 10   *   1   Jul   2004
        Ironing boards, freestanding 7   *   1   Jul   2004
        Irons 5   *   1   Jul   2004
        Washing machines 10   *   1   Jul   2004
Outdoor assets:      
        Automatic garage doors:      
                Controls 5   *   1   Jul   2004
                Motors 10   *   1   Jul   2004
        Barbecue assets:      
                Fixed barbecue assets:      
                        Sliding trays and cookers 10   *   1   Jul   2004
                Freestanding barbecues 5   *   1   Jul   2004
        Floor carpet (including artificial grass and matting) 5   *   1   Jul   2004
        Furniture, freestanding 5   *   1   Jul   2004
        Gardening watering installations:      
                Control panels 5   *   1   Jul   2004
                Pumps 5   *   1   Jul   2004
                Timing devices 5   *   1   Jul   2004
        Garden lights, solar 8   *   1   Jul   2004
        Garden sheds, freestanding 15   *   1   Jul   2004
        Gates, electrical:      
                Controls 5   *   1   Jul   2004
                Motors 10   *   1   Jul   2004
        Operable pergola louvres:      
                Controls 15   *   1   Jul   2004
                Motors 15   *   1   Jul   2004
        Sauna heating assets 15   *   1   Jul   2004
        Sewage treatment assets:      
                Controls 8   *   1   Jul   2004
                Motors 8   *   1   Jul   2004
        Spas:      
                Fixed spa assets:      
                        Chlorinators 12   *   1   Jul   2004
                        Filtration assets (including pumps) 12   *   1   Jul   2004
                        Heaters (electric or gas) 15   *   1   Jul   2004
                Freestanding spas (incorporating blowers, controls, filters, heaters and pumps) 17   *   1   Jul   2004
        Swimming pool assets:      
                Chlorinators 12   *   1   Jul   2004
                Cleaning assets 7   *   1   Jul   2004
                Filtration assets (including pumps) 12   *   1   Jul   2004
                Heaters:      
                        Electric 15   *   1   Jul   2004
                        Gas 15   *   1   Jul   2004
                        Solar 20   *   1   Jul   2004
        Tennis court assets:      
                Cleaners 3   *   1   Jul   2004
                Drag brooms 3   *   1   Jul   2004
                Nets 5   *   1   Jul   2004
                Rollers 3   *   1   Jul   2004
                Umpire chairs 15   *   1   Jul   2004
Security and monitoring assets:      
        Access control systems:      
                Code pads 5   *   1   Jul   2004
                Door controllers 5   *   1   Jul   2004
                Readers:      
                        Proximity 7   *   1   Jul   2004
                        Swipe card 3   *   1   Jul   2004
        Closed circuit television systems:      
                Cameras 4   *   1   Jul   2004
                Monitors 4   *   1   Jul   2004
                Recorders:      
                        Digital 4   *   1   Jul   2004
                        Time lapse 2   *   1   Jul   2004
                Switching units (including multiplexes) 5   *   1   Jul   2004
        Security systems:      
                Code pads 5   *   1   Jul   2004
                Control panels 5   *   1   Jul   2004
                Detectors (including passive infra-red, photo sensors and vibration) 5   *   1   Jul   2004
                Global System for Mobiles (GSM) Units 5   *   1   Jul   2004
                Noise makers (including bells and sirens) 5   *   1   Jul   2004
 
Non-residential property operators
( 67120 )
ASSET LIFE
(YEARS) 		REVIEWED DATE OF
APPLICATION
Commercial office building assets:      
        Boilers 20   *   1   Jul   2005
        Boiler pumps 5   *   1   Jul   2005
        Carpets 8   *   1   Jul   2005
        Door control and motor drive system for automatic sliding doors (incorporating chains, controls, motors and sensors, excluding doors) 15   *   1   Jul   2005
        Hot water installations (excluding commercial boilers and piping) 15   *   1   Jul   2005
        Power supply assets:      
                Emergency or standby:      
                        Generator assets:      
                                Acoustic hoods and canopies 20   *   1   Jul   2005
                                Generators (incorporating attached engine management and generator monitoring instruments) 25   *   1   Jul   2005
                                Power management units 15   *   1   Jul   2005
                Lighting control systems (microprocessor based) 5   *   1   Jul   2014
                Uninterruptible power supply (UPS) systems:      
                        Line interactive types 5   *   1   Jul   2013
                        On line double conversion types 10   *   1   Jul   2013
        Window blinds 20   *   1   Jul   2005

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

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