Taxation Ruling

TR 2019/5

Income tax: effective life of depreciating assets (applicable from 1 July 2019)

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    This Ruling, which applies from 1 July 2019, replaces TR 2018/4 (see paragraph 5 of this Ruling for further details).
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W

W
ASSET LIFE
(YEARS) 		REVIEWED DATE OF
APPLICATION
Warehouse and distribution centre equipment and machines:
    Automated storage and retrieval machines 20     *     1   Jul   2011
    Balers 15     *     1   Jul   2011
    Battery assets for warehouse vehicles (including pallet trucks and forklifts):
        Batteries (detachable for recharging) 5     *     1   Jul   2011
        Battery chargers:
            Forklifts 11     *     1   Jul   2011
            Other 10     *     1   Jul   2011
        Handling assets:
            Battery tuggers 10     *     1   Jul   2011
            Racking roller beds 15     *     1   Jul   2011
            Transfer carts 10     *     1   Jul   2011
            Washers 10     *     1   Jul   2011
    Carts/buggies 15     *     1   Jul   2011
    Conveyors 15     *     1   Jul   2011
    Dock levellers, pallet jacks, pallet trucks and scissor lifts - see Table B Loading bay assets
    Door controls and motor drive systems (incorporating chains, controls, motor and sensors, but excluding doors):
        External 20     *     1   Jul   2011
        Internal 10     *     1   Jul   2011
    Floor sweepers/scrubbers 10     *     1   Jul   2011
    Forklift attachments:
        Cages 10     *     1   Jul   2011
        Push pull units 11     *     1   Jul   2011
    Inflatable dock bags/seals/shelters 10     *     1   Jul   2011
    Packaging machines and wrapping machines - see Table B Packaging machines
    Pallet assets:
        Dispensers 15     *     1   Jul   2011
        Lift tables 10     *     1   Jul   2011
    Racks 20     *     1   Jul   2011
    Radio frequency terminal assets:
        Barcode readers/scanners 5     *     1   Jul   2011
        Portable/handheld and vehicle mounted terminal devices 4     *     1   Jul   2011
    Refrigeration assets - see Table B Refrigeration assets
    Roll cages 10     *     1   Jul   2011
    Trolleys 10     *     1   Jul   2011
    Voice picking assets:
        Battery chargers 4     *     1   Jul   2011
        Headsets 4     *     1   Jul   2011
        Terminals (on person) 4     *     1   Jul   2011
    Waste compactors (used for cardboard and plastic):
        Electric 15     *     1   Jul   2011
        Hydraulic 20     *     1   Jul   2011
Waste storage and disposal bins (including crane bins, hooklift bins, skip bins and other industrial use bins) 10     *     1   Jul   2016
Weighbridges 20     *     1   Jul   2014
Welders:
    Diesel 10     *     1   Jul   2008
    Electric 5     *     1   Jul   2008
    Oxygen welders and cutters 10     *     1   Jul   2014
Window blinds 15     *     1   Jul   2016
Working beasts and beasts of burden (including camels and horses but excluding working dogs) used in a business other than primary production 15     *     1   Jul   2014
Working dogs (including certified therapy dogs used by qualified therapists, detection dogs, guard dogs, performing dogs, police dogs and security dogs; but excluding assistance dogs (such as guide dogs, hearing dogs and service dogs), pet dogs, racing dogs, support dogs, and working dogs used in primary production) 8     *     1 Jul 2019

Footnotes

[1]
All legislative references are to the ITAA 1997 unless otherwise indicated.

[2]
In some circumstances, the effective life of an asset is not relevant in determining the deduction available under Division 40 for decline in value of the asset. Examples include allocating assets to a pool or where an immediate deduction is available.

[3]
A specified purpose is a taxable purpose, the purpose of producing exempt income or non-assessable non-exempt income, or the purpose of conducting research and development activities (assuming that this is reasonably likely).

[4]
For the purposes of Division 40.

[5]
The Government has proposed to allow taxpayers to self-assess the effective life of certain intangible assets that they start to hold on or after 1 July 2016. However, the proposed measure has not yet become law at the time this Ruling was prepared.

[6]
A capped effective life of 6 ⅔ years is available - see subsection 40-102(5).

[7]
A capped effective life of 6 ⅔ years is available for harvesters listed in this sub-category (assets marked with #) - see subsection 40-102(5).

[8]
Primary producers may deduct capital expenditure incurred from 7.30pm (AEST), 12 May 2015 on a fodder storage asset over three years - see sections 40-515 and 40-548, and subsections 40-525(3) and 40-555(4).

[9]
Primary producers may deduct capital expenditure incurred from 7.30pm (AEST), 12 May 2015 on a fodder storage asset over three years - see sections 40-515 and 40-548, and subsections 40-525(3) and 40-555(4).

[10]
A capped effective life of 6 ⅔ years is available - see subsection 40-102(5).

[11]
A capped effective life of 6 ⅔ years is available - see subsection 40-102(5).

[12]
A capped effective life of 6 ⅔ years is available - see subsection 40-102(5).

[13]
A capped effective life of 6 ⅔ years is available - see subsection 40-102(5).

[14]
A capped effective life of 6 ⅔ years is available - see subsection 40-102(5).

[15]
A capped effective life of 6 ⅔ years is available - see subsection 40-102(5).

[16]
A capped effective life of 6 ⅔ years is available - see subsection 40-102(5).

[17]
A capped effective life of 6 ⅔ years is available where applicable (assets marked with #) - see subsection   40-102(5).

[18]
Primary producers may deduct capital expenditure incurred from 7.30pm (AEST), 12 May 2015 on a fodder storage asset over three years - see sections 40-515 and 40-548, and subsections 40-525(3) and 40-555(4).

[19]
Primary producers may deduct capital expenditure incurred from 7.30pm (AEST), 12 May 2015 on a fodder storage asset over three years - see sections 40-515 and 40-548, and subsections 40-525(3) and 40-555(4).

[20]
Primary producers may deduct capital expenditure incurred from 7.30pm (AEST), 12 May 2015 on a fodder storage asset over three years - see sections 40-515 and 40-548, and subsections 40-525(3) and 40-555(4).

[21]
Primary producers may deduct capital expenditure incurred from 7.30pm (AEST), 12 May 2015 on a fodder storage asset over three years - see sections 40-515 and 40-548, and subsections 40-525(3) and 40-555(4).

[22]
Primary producers may deduct capital expenditure incurred from 7.30pm (AEST), 12 May 2015 on a fodder storage asset over three years - see sections 40-515 and 40-548, and subsections 40-525(3) and 40-555(4).

[23]
Defined as water containing in excess of 10 parts of salt per 1,000 parts of water.

[24]
A capped effective life of 15 years is available where applicable (assets marked with #) - see subsection   40-102(5).

[25]
A capped effective life of 15 years is available for assets marked with #, except offshore platforms - see subsection   40-102(5).

[26]
A capped effective life of 20 years is available - see subsection 40-102(5).

[27]
A capped effective life of 15 years is available where applicable (assets marked with #) - see subsection   40-102(5).

[28]
A capped effective life of 10 years is available - see subsection 40-102(4)

[29]
A capped effective life of 20 years is available where applicable (assets marked with #) - see subsection   40-102(5).

[30]
A capped effective life of 20 years is available where applicable (assets marked with #) - see subsection   40-102(5).

[31]
A capped effective life of 7 ½ years may be available - see subsection 40-102(4).

[32]
A capped effective life of 7 ½ years is available - see subsection 40-102(4).

[33]
A hire car is a passenger car hired with a driver, not being a taxi.

[34]
A rental car is a passenger car hired, leased or rented for short-term use without a driver.

[35]
A capped effective life of 7 ½ years is available - see subsection 40-102(4).

[36]
A capped effective life of 7 ½ years is available - see subsection 40-102(4).

[37]
A capped effective life of 10 years is available - see subsection 40-102(4).

[38]
A capped effective life of 7 ½ years is available - see subsection 40-102(4).

[39]
A capped effective life of 10 years is available - see subsection 40-102(4).

[40]
A capped effective life of 8 years is available - see subsection 40-102(4).

[41]
A capped effective life of 10 years is available - see subsection 40-102(4).

[42]
A capped effective life of 8 years is available - see subsection 40-102(4).

[43]
A rental car is a passenger car hired, leased or rented for short-term use without a driver.

[44]
From 1 July 2017 investors in residential investment properties will not be able to deduct the decline in value of any plant and equipment purchased by previous owners of the property. This measure applies to existing plant and equipment in residential properties purchased after 7:30pm (AEST), 9 May 2017.

[45]
A capped effective life of 7 ½ years may be available - see subsection 40-102(4).

[46]
A specified purpose is a taxable purpose, the purpose of producing exempt income or non-assessable non-exempt income, or the purpose of conducting R & D activities (assuming that this is reasonably likely).

[47]
A capped effective life of 10 years is available - see subsection 40-102(4).

[48]
A capped effective life of 8 years is available - see subsection 40-102(4).

[49]
A capped effective life of 10 years is available - see subsection 40-102(4).

[50]
A capped effective life of 8 years is available - see subsection 40-102(4).

[51]
A capped effective life of 7 ½ years is available - see subsection 40-102(4).

[52]
A hire car is a passenger car hired with a driver, not being a taxi.

[53]
A rental car is a passenger car hired, leased or rented for short-term use without a driver.

[54]
A capped effective life of 7 ½ years is available - see subsection 40-102(4).

[55]
A capped effective life of 7 ½ years is available - see subsection 40-102(4).

[56]
A capped effective life of 10 years is available - see subsection 40-102(4).

[57]
A capped effective life of 7 ½ years is available - see subsection 40-102(4).

[58]
A specified purpose is a taxable purpose, the purpose of producing exempt income or non-assessable non-exempt income, or the purpose of conducting R & D activities (assuming that this is reasonably likely).

Not previously issued as a draft

References

ATO references:
NO 1-HHM96UX

Previous Rulings/Determinations:
TR 2013/4
TR 2014/4
TR 2015/2
TR 2016/1
TR 2017/2
TR 2018/4

ISSN: 2205-6122

Subject References:
depreciation
depreciation rate
effective life

Business Line:  PGI

Legislative References:
ITAA 1997
ITAA 1997 Div 40
ITAA 1997 40-25
ITAA 1997 40-70(1)
ITAA 1997 40-72(1)
ITAA 1997 40-75(1)
ITAA 1997 40-95
ITAA 1997 40-95(4)
ITAA 1997 40-95(5)
ITAA 1997 40-95(7)
ITAA 1997 40-100
ITAA 1997 40-100(5)
ITAA 1997 40-100(6)(b)
ITAA 1997 40-102
ITAA 1997 40-102(4)
ITAA 1997 40-102(4A)
ITAA 1997 40-105
ITAA 1997 40-110
ITAA 1997 40-345(2)
TAA 1953

Other References:
Income Tax (Effective Life of Depreciating Assets) Amendment Determination 2019 (No. 1)

TR 2019/5 history
  Date: Version: Change:
You are here 26 June 2019 Original ruling  
  22 April 2020 Consolidated ruling Addendum

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