Taxation Ruling

TR 2020/3

Income tax: effective life of depreciating assets (applicable from 1 July 2020)

Please note that the PDF version is the authorised consolidated version of this ruling and amending notices.

This document has been Withdrawn.
View the Withdrawal notice for this document.
This Ruling, which applies from 1 July 2020, replaces TR 2019/5 (see paragraph 5 of this Ruling for further details).

Rental, hiring and real estate services - (66110 to 67200)

RENTAL, HIRING AND REAL ESTATE SERVICES
(66110 to 67200)

Note: 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.
*Rental and hiring services (except real estate)* *(66110 to 66400)*
ASSET	LIFE (YEARS)	REVIEWED	DATE OF APPLICATION
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
Elevating work platforms (EWPs):
Boom lifts (including knuckle and telescopic boom lifts)	15	*	1 Jul 2015
Personnel lifts	10	*	1 Jul 2015
Scissor lifts	10	*	1 Jul 2015
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
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, CD 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
Ladders (including stepladders, work platforms extension ladders, trestles and planks):
Aluminium	4	*	1 Jul 2015
Fibreglass	4	*	1 Jul 2015
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
Recreational vehicles:
Campervans and motorhomes:
Vehicles having a gross vehicle mass greater than 3 tonnes and 4WD vehicles	5	*	1 Jul 2015
Vehicles having a gross vehicle mass of 3 tonnes or less	8	*	1 Jul 2015
Caravans and camper trailers	12	*	1 Jul 2015
Rental cars ^[43]	5	*	1 Jul 2016
Scaffolding:
Aluminium	5	*	1 Jul 2015
Fibreglass	5	*	1 Jul 2015
Steel	15	*	1 Jul 2015
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* ^[44] *(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 peep holes	10	*	1 Jul 2019
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)	15	*	1 Jul 2019
Portable	10	*	1 Jul 2005
Floor coverings (removable without damage):
Carpet	8	*	1 Jul 2019
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
Home automation control assets	10	*	1 Jul 2019
Hot water systems (excluding piping):
Electric	12	*	1 Jul 2004
Gas	12	*	1 Jul 2004
Solar	15	*	1 Jul 2004
Hydronic assets:
Controls	10	*	1 Jul 2019
Water heaters	15	*	1 Jul 2019
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
Skylights:
Controls	10	*	1 Jul 2019
Motors	10	*	1 Jul 2019
Solar power generating system (incorporating batteries, inverters, solar panels, regulators)	20	*	1 Jul 2004
Stereo systems (incorporating amplifiers, cassette players, CD 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
Telephone hand sets	6	*	1 Jul 2019
Telephone systems - see Table B Telephony
Television antennas, freestanding	5	*	1 Jul 2004
Television sets	8	*	1 Jul 2019
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 (VCRs)	5	*	1 Jul 2004
Water pumps:
Multi-storey	20	*	1 Jul 2019
Rainwater tanks	5	*	1 Jul 2019
Single residence pressure pumps	8	*	1 Jul 2019
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)	3	*	1 Jul 2019
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	10	*	1 Jul 2019
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 phones (WIPs)	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:
AC variable speed drives (VSDs)	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	8	*	1 Jul 2019
Freezers	12	*	1 Jul 2004
Garbage disposal units	10	*	1 Jul 2004
Microwave ovens	8	*	1 Jul 2019
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	7	*	1 Jul 2019
Ironing boards, freestanding	5	*	1 Jul 2019
Irons	5	*	1 Jul 2004
Washing machines	8	*	1 Jul 2019
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
Folding arm awnings:
Controls	10	*	1 Jul 2019
Motors	10	*	1 Jul 2019
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	5	*	1 Jul 2019
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
Rainwater tanks:
Galvanised steel	25	*	1 Jul 2019
Polyethylene	15	*	1 Jul 2019
Roller blinds
Controls	10	*	1 Jul 2019
Motors	10	*	1 Jul 2019
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	10	*	1 Jul 2019
Filtration assets (including pumps)	10	*	1 Jul 2019
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	10	*	1 Jul 2019
Cleaning assets	7	*	1 Jul 2004
Covers (including blankets)	8	*	1 Jul 2019
Filtration assets (including pumps)	10	*	1 Jul 2019
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
CCTV 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 infrared, 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
Building maintenance units	35	*	1 Jul 2005
Carpets	8	*	1 Jul 2005
Door controls and motor drive systems for automatic sliding doors (incorporating chains, controls, motors and sensors, but 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 previously issued as a draft

References

ATO references:
NO 1-L24N0H0

Previous Rulings/Determinations:
TR 2020/3W
TR 2014/4
TR 2015/2
TR 2016/1
TR 2017/2
TR 2018/4
TR 2019/5

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 2020 (No. 2)

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