Taxation Ruling
IT 13
Waterslide systems - depreciation and investment allowance
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FOI status:
may be releasedFOI number: I 1100493Facts
Confirmation was sought on rates of depreciation applicable to waterslide systems and whether such systems qualify for investment allowance.
2. Briefly, the waterslide systems consist of a plexiglass or gel-coated fibreglass flume suspended in such a way as to provide an elevated sliding surface for the riders and terminating in a landing pool. Water is pumped to flow continuously through the flume while it is an operation. The waterslides are constructed so as to be able to handle the load imposed on them over their entire length without support from underneath. They may be laid directly on sloping ground and held in place by cradling, or supported on trestles. The latter is the most common form of construction. The cradling, trestles and elevated walkways with their supporting structures would most likely be constructed either of timber or steel, depending on the setting. The landing pools would be generally either of concrete, fibreglass or plexiglass, either in or out of the ground, or in suitable cases a natural pool or one excavated in natural ground might be used.
Ruling
3. On the basis of the information provided, annual depreciation rates of 5% prime cost and 7.1/2% diminishing value have been fixed in respect of the entire systems under section 55 of the Income Tax Assessment Act 1936. These rates do not reflect any increases allowable under section 57AG or 57AL of the Act.
4. Further, it was confirmed that the systems would qualify as eligible property for the purposes of the investment allowance provisions of sub-division B of Division 3, Part III of the Act.
Commissioner of Taxation
31 July 1981