Taxation Ruling

TR 2021/3

Income tax: effective life of depreciating assets (applicable from 1 July 2021)

  • 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    This document has been Withdrawn.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 2021, replaces TR 2020/3 (see paragraph 6 of this Ruling for further details).

W

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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 Income Tax Assessment Act 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. Other provisions outside of Division 40 may also allow an immediate deduction for expenditure incurred in acquiring an asset, such as temporary full expensing available under Subdivision 40-BB of the Income Tax (Transitional Provisions) Act 1997 .

[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]
See subsections 40-70(1) and 40-72(1) for diminishing value and subsection 40-75(1) for prime cost.

[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 be entitled to an immediate deduction for capital expenditure incurred on a fodder storage asset if the asset was first used or installed ready for use on or after 19 August 2018 - see sections 40-515 and 40-548, and subsections 40-525(3) and 40-555(4).

[9]
Primary producers may be entitled to an immediate deduction for capital expenditure incurred on a fodder storage asset if the asset was first used or installed ready for use on or after 19 August 2018 - 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 where applicable (assets marked with #) - 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 - see subsection 40-102(5).

[18]
Primary producers may be entitled to an immediate deduction for capital expenditure incurred on a fodder storage asset if the asset was first used or installed ready for use on or after 19 August 2018 - see sections 40-515 and 40-548, and subsections 40-525(3) and 40-555(4).

[19]
Primary producers may be entitled to an immediate deduction for capital expenditure incurred on a fodder storage asset if the asset was first used or installed ready for use on or after 19 August 2018 - see sections 40-515 and 40-548, and subsections 40-525(3) and 40-555(4).

[20]
Primary producers may be entitled to an immediate deduction for capital expenditure incurred on a fodder storage asset if the asset was first used or installed ready for use on or after 19 August 2018 - see sections 40-515 and 40-548, and subsections 40-525(3) and 40-555(4).

[21]
Primary producers may be entitled to an immediate deduction for capital expenditure incurred on a fodder storage asset if the asset was first used or installed ready for use on or after 19 August 2018 - see sections 40-515 and 40-548, and subsections 40-525(3) and 40-555(4).

[22]
Primary producers may be entitled to an immediate deduction for capital expenditure incurred on a fodder storage asset if the asset was first used or installed ready for use on or after 19 August 2018 - see sections 40-515 and 40-548, and subsections 40-525(3) and 40-555(4).

[23]
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, certain investors in residential properties will not be able to deduct the decline in value of plant and equipment that has been used previously by an entity (other than as trading stock), subject to limited exceptions. This measure applies to plant and equipment acquired at or 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).

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