The
This is achieved by staff undertaking effective life reviews, either of a single asset (such as concrete truck mixers), or an industry (e.g. professional
photographic services).
Broadly, these reviews involve:
- Identifying the assets currently used in the industry
- Consulting (including interviews and asset inspections) with major interest groups such as industry representative bodies, users and suppliers
- Completing a report with recommendations for new effective lives
- Removing redundant items currently in the commissioner’s schedule.
New effective lives arising from these reviews are published twice yearly as addenda to the Taxation Ruling.
The objective of a review is to determine the effective life of the assets used by an industry, to reflect the circumstances of use for most users in that
industry. The
This represents a break with the past where most of the effective life determinations were based on an estimate of the average circumstances of use in
an industry. Clearly, taxpayers whose circumstances of use are different to the industry norm can self-assess their own effective life.
To date, the
Some reviews were initiated in response to requests from taxpayers. The effective life and capital allowances centre of expertise within the Tax
Office has now initiated a risk management approach to identify assets or industries for review. They have identified the following three risk
factors, each being of equal weight: The dollar amount of depreciation claimed annually, the number of taxpayers who own the asset(s) and whether
or not the asset/industry is listed in the effective life schedule, and, if it is listed, whether or not that listing is inconsistent with current
industry practice.
The ATO make periodic consolidations of Tables A and B to incorporate further effective life determinations made by the Commissioner as a result of reviews
undertaken. Industry bodies and interested taxpayers are consulted during the course of effective life reviews and, in some instances reports prepared
by independent consultants are used. An independent review panel also checks each review process to confirm the level of industry consultation was
appropriate. That panel typically comprises representatives from the Corporate Tax Association, The Institute of Chartered Accountants in Australia
and the Australian Taxation Office.
In TR 2017/2, the Commissioner has made a determination of the effective life of certain depreciating assets in Tables A and B with effect from 1 July 2017.
Due to the level of detail contained in TR 2017/2, only the industries covered by Table A are listed below rather
than particular assets. Please refer directly to the ruling if you are in any of these industries.
Schedule – ANZSIC categories in Table A
| AGRICULTURE, FORESTRY AND FISHING (01110 to 05290) |
| Agriculture |
| Aquaculture |
| Beef cattle farming |
| Beef cattle feedlots |
| Coffee, olive and tree nut growing |
| Dairy cattle farming |
| Fishing |
| Forestry and logging |
| Fruit growing |
| Mushroom growing |
| Nursery and floriculture production |
| Other agriculture and fishing support services |
| Pig farming |
| Poultry farming for breeding, eggs and meat |
| Poultry hatcheries |
| Sheep farming |
| Vegetable growing (under cover) |
| Vegetable growing (outdoors) and sugar cane growing |
| MINING (06000 to 10900) |
| Coal mining |
| Construction material mining |
| Gold ore mining |
| Iron ore mining |
| Mineral sand mining |
| Mineral exploration services |
| Nickel ore mining |
| Oil and gas extraction |
| Other mining support services |
| Petroleum exploration services |
| MANUFACTURING (11110 to 25990) |
| Alumina production |
| Aluminium smelting |
| Bakery product manufacturing |
| Bakery product manufacturing (non-factory based) |
| Basic chemical and chemical product manufacturing |
| Beer manufacturing (except non-alcoholic beer) |
| Boiler, tank and other heavy gauge metal container manufacturing |
| Cement manufacturing |
| Ceramic product manufacturing |
| Cereal and pasta product manufacturing |
| Cleaning compound and toiletry preparation manufacturing |
| Concrete product manufacturing |
| Confectionery manufacturing |
| Cured meat and smallgoods manufacturing |
| Dairy product manufacturing |
| Fabricated metal product manufacturing |
| Fruit and vegetable processing |
| Furniture and other manufacturing |
| Glass and glass product manufacturing |
| Grain mill product manufacturing |
| Human pharmaceutical and medicinal product manufacturing |
| Industrial gas manufacturing |
| Iron smelting and steel manufacturing |
| Log sawmilling and timber dressing |
| Meat processing |
| Motor vehicle body and trailer manufacturing |
| Motor vehicle manufacturing |
| Non-ferrous metal casting |
| Non-metallic mineral product manufacturing |
| Oil and fat manufacturing |
| Other basic chemical product manufacturing |
| Other food product manufacturing n.e.c. |
| Other motor vehicle parts manufacturing |
| Other professional and scientific equipment manufacturing n.e.c. |
| Other transport equipment manufacturing n.e.c. |
| Other wood product manufacturing |
| Paint and coatings manufacturing |
| Paper stationery manufacturing |
| Petroleum refining |
| Photographic, optical and ophthalmic equipment manufacturing |
| Plaster product manufacturing |
| Plywood and veneer manufacturing |
| Polymer film and sheet packaging material manufacturing |
| Polymer product and rubber product manufacturing |
| Poultry processing |
| Prepared animal and bird feed manufacturing |
| Printing |
| Printing support services |
| Pulp, paper and converted paper product manufacturing |
| Railway rolling stock manufacturing and repair services |
| Ready-mixed concrete manufacturing |
| Reconstituted wood product manufacturing |
| Rigid and semi-rigid polymer product manufacturing |
| Sanitary paper product manufacturing |
| Soft drink, cordial and syrup manufacturing |
| Spirit manufacturing |
| Steel coil roll forming, slitting, blanking and sheet metal forming |
| Sugar manufacturing |
| Textile, leather, clothing and footwear manufacturing |
| Wine and other alcoholic beverage manufacturing |
| ELECTRICITY, GAS, WATER AND WASTE SERVICES (26110 to 29220) |
| Electricity supply |
| Gas supply |
| Irrigation water providers |
| Sewerage and drainage services |
| Solid waste collection services |
| Waste remediation and materials recovery services |
| Waste treatment and disposal services |
| Water supply |
| CONSTRUCTION (30110 to 32990) |
| Other heavy and civil engineering construction n.e.c. |
| WHOLESALE TRADE (33110 to 38000) |
| Commission-based wholesaling |
| Petroleum product wholesaling |
| Wool wholesaling |
| RETAIL TRADE (39110 to 43209) |
| Food retailing |
| Fuel retailing |
| Motor vehicle tyre or tube retailing |
| Other store-based retailing |
| ACCOMMODATION AND FOOD SERVICES (44000 to 45302) |
| Accommodation |
| Cafes, restaurants, takeaway food services, pubs, taverns bars and clubs (hospitality) |
| TRANSPORT POSTAL AND WAREHOUSING (46100 to 53090) |
| Airport operations and other air transport support services |
| Courier pick-up and delivery services |
| Other transport support services n.e.c. |
| Other warehousing and storage services |
| Postal services |
| Rail freight and passenger transport services |
| Road transport |
| Scenic and sightseeing transport |
| Tramway and light rail passenger transport services |
| Water transport and support services |
| INFORMATION MEDIA AND TELECOMMUNICATIONS (54110 to 60200) |
| Electronic information storage services |
| Internet publishing and broadcasting |
| Library and other information services |
| Motion picture and video activities |
| Motion picture exhibition |
| Radio broadcasting |
| Telecommunications services |
| Television broadcasting |
| FINANCIAL AND INSURANCE SERVICES (62100 to 64200) |
| RENTAL, HIRING AND REAL ESTATE SERVICES (66110 to 67200) |
| Non-residential property operators |
| Rental and hiring services (except real estate) |
| Residential property operators |
| PROFESSIONAL, SCIENTIFIC AND TECHNICAL SERVICES (69100 to 70000) |
| Advertising services |
| Professional photographic services |
| Scientific research services |
| Surveying and mapping services |
| Veterinary services |
| ADMINISTRATIVE AND SUPPORT SERVICES (72110 to 73200) |
| Building and other industrial cleaning services |
| Gardening services |
| Packaging services |
| EDUCATION AND TRAINING (80100 to 82200) |
| HEALTH CARE AND SOCIAL ASSISTANCE (84010 to 87900) |
| Dental services |
| Hospitals |
| Nursing home operation |
| Optometry and optical dispensing |
| Pathology and diagnostic imaging services |
| Podiatry services |
| Specialist medical services n.e.c. |
| ARTS AND RECREATION SERVICES (89100 to 92099) |
| Creative and performing arts activities |
| Gambling activities |
| Health and fitness centres and gymnasia operation |
| Heritage activities |
| Sport and recreation services |
| OTHER SERVICES (94110 to 96030) |
| Automotive body, paint and interior repair n.e.c. |
| Automotive repair and maintenance |
| Funeral, crematorium and cemetery services |
| Hairdressing and beauty services |
| Laundry and dry cleaning services |
| Other machinery and equipment repair and maintenance |
| Parking services |
| Photographic film processing |
TR 2017/2 – Effective lives (Asset categories)
Table B as at 1 July 2017
| ASSET | LIFE (YEARS) |
DATE OF APPLICATION |
| A | ||
| Accommodation units in caravan/tourist parks being articles, not fixtures, and used for a specified purpose 35 : | ||
| Relocatable homes and tourist park cabins constructed with chassis | 20 | 1 Jul 2015 |
| Other accommodation units (eg manufactured homes) | 30 | 1 Jul 2015 |
| Additive manufacturing printers (including 3D printers) | 3 | 1 Jul 2016 |
| Advertising signs: | ||
| Billboard assets: | ||
| Billboard lighting: | ||
| HID/Metal halide lighting systems | 5 | 1 Jul 2015 |
| LED lighting systems (including solar powered LED lighting systems) | 10 | 1 Jul 2015 |
| Solar power generating assets – see Table B Solar photovoltaic electricity generation system assets | ||
| Billboard steel structures (incorporating electrical systems, footings, scaffolding and walking platforms and steel frame sign panels) | 20 | 1 Jul 2015 |
| Computer hardware – see Table B Computers | ||
| Digital LED screens | 6 | 1 Jul 2015 |
| Electronic message centre (EMC) units | 3 | 1 Jul 2015 |
| Mobile billboard assets: | ||
| Digital LED screens | 4 | 1 Jul 2015 |
| Mobile billboard trucks and trailers – see Table B Motor vehicles and trailers | ||
| Floor mounted internal advertising panels (used in airports and shopping centres etc) | 7 | 1 Jul 2015 |
| Kiosks and other external standalone advertising panel structures | 15 | 1 Jul 2015 |
| LED advertising screens (used in office tower foyers etc) | 5 | 1 Jul 2015 |
| Wall mounted advertising panels (used in airports, rail concourses and platforms, shopping centres etc): | ||
| Digital LED advertising panels | 5 | 1 Jul 2015 |
| Static advertising panels | 10 | 1 Jul 2015 |
| Air compression assets: | ||
| Air compression assets generally (including air compressors, air dryers and air receivers) | 15 | 1 Jul 2014 |
| Air compressors (portable): | ||
| Compressors – reciprocating | 7 | 1 Jul 2014 |
| Compressors – rotary screw | 10 | 1 Jul 2014 |
| Air-conditioning assets (excluding pipes, duct work and vents): | ||
| Air handling units | 20 | 1 Jul 2003 |
| Cooling towers | 15 | 1 Jul 2003 |
| Condensing sets | 15 | 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 |
| Damper motors (including variable air volume box controllers) | 10 | 1 Jul 2003 |
| Fan coil units (connected to a condensing set) | 15 | 1 Jul 2003 |
| Humidifiers (steam generator) | 10 | 1 Jul 2003 |
| Mini split systems up to 20KW (including ceiling, floor and high wall split systems) | 10 | 1 Jul 2003 |
| Packaged air conditioning units | 15 | 1 Jul 2003 |
| Pumps | 20 | 1 Jul 2003 |
| Room units | 10 | 1 Jul 2003 |
| Aircraft: | ||
| Aeroplanes: | ||
| General use 36 | 20 | 1 Jul 2002 |
| Used predominantly for agricultural spraying or agricultural dusting 37 | 10 | 1 Jul 2002 |
| Helicopters: | ||
| General use 38 | 20 | 1 Jul 2002 |
| Used predominantly for mustering, agricultural spraying or agricultural dusting 39 | 10 | 1 Jul 2002 |
| Airless sprayers (used in painting, epoxy and polyurethane coating, priming etc): | ||
| Electrically and petrol-driven units | 7 | 1 Jul 2013 |
| Pneumatically-driven units | 15 | 1 Jul 2013 |
| Artworks qualifying as depreciating assets (restricted to works of art and reproductions of artwork that are tangible in nature, such as paintings, sculptures, drawings, engravings and photographs, that are displayed in open viewing areas in premises used for taxable purposes including reception areas, waiting rooms and foyers) |
100 | 1 Jul 2013 |
| Automatic teller machines | 8 | 1 Jul 2001 |