Federal Register of Legislation - Australian Government

Primary content

Determinations/Taxation as made
This instrument amends the Income Tax (Effective Life of Depreciating Assets) Determination 2015 and provides taxpayers with a choice when measuring the decline in value (depreciation) of a depreciating asset. A taxpayer can either use an effective life determined by the Commissioner or self-assess the effective life of a depreciating asset themself.
Administered by: Treasury
Registered 24 Jun 2022

Legislative Instrument

Income Tax (Effective Life of Depreciating Assets) Amendment Determination (No 1) 2022

 

 

 

I, Ben Kelly, Deputy Commissioner of Taxation, make this determination under subsection 40-100(1) of the Income Tax Assessment Act 1997 (ITAA 1997).

 

 

Ben Kelly

Deputy Commissioner of Taxation

Policy, Analysis and Legislation

Law Design and Practice

Dated: 10 June 2022

 

 

1.            Name of instrument

This Determination is the Income Tax (Effective Life of Depreciating Assets) Amendment Determination (No 1) 2022.

 

2.            Commencement

This instrument commences on 1 July 2022.

 

3.            Amendment of Income Tax (Effective Life of Depreciating Assets) Determination 2015

Schedule 1 amends the Income Tax (Effective Life of Depreciating Assets) Determination 2015 - F2015L00798 registered on 11 June 2015.

 

4.            Determination

The amendments in this determination may affect:

(1)          taxpayers who choose, under paragraph 40-95(1)(a) of the ITAA 1997, to use an effective life determined by the Commissioner for a depreciating asset when working out its decline in value, and

(2)          taxpayers who are directed, under subsections 40-95(4C),40-95(5C), 40-95(6), 58-75(5) and 58-80(6) of the ITAA 1997, to use an effective life determined by the Commissioner.

 

5.            Definitions

An asterisk (*) in the third column of Tables A and B indicates the corresponding assets have been reviewed to date as part of the ongoing review of the Commissioner’s effective life determinations.

A hash (#) in the third column of Table A or B indicates a capped life is available for the depreciating assets under section 40-102 of the ITAA 1997.


 

Schedule 1     Amendments

(section 3)

 

 

[1]       Heading to Table A

 

Omit

Table A as at 1 July 2021

 

Substitute

Table A as at 1 July 2022

 

 

[2]       Table A, industry category AGRICULTURE, FORESTRY AND FISHING (01110 to 05290)

 

Omit

Fences (excluding stockyard, pen and portable fences):  Being fencing constructed at a time for a particular function (eg a line of fencing forming a side of a boundary or paddock) not being in the nature of a repair:

 

 

 

 

Substitute

Fences (excluding stockyard, pen and portable fences):  Being fencing constructed at a time for a particular function (e.g. a line of fencing forming a side of a boundary or paddock) not being in the nature of a repair:

 

 

 

 

 

[3]       Table A, industry category AGRICULTURE, FORESTRY AND FISHING (01110 to 05290), sub-category Vegetable growing (outdoors) and sugar cane growing (01230 and 01510)

 

Omit

      Rakes (eg cane trash rakes)

10

*

1 Jul 2007

 

Substitute

      Rakes (e.g. cane trash rakes)

10

*

1 Jul 2007

 

 

[4]       Table A, industry category AGRICULTURE, FORESTRY AND FISHING (01110 to 05290), sub-category Fruit and tree nut growing (01310 to 01370, 01390 and 01590)

 

Omit

                         Pick ups (eg almonds)

12

*#

1 Jul 2007

 

Substitute

                         Pick ups (e.g. almonds)

12

*#

1 Jul 2007

 

 

[5]       Table A, industry category MINING (06000 to 10900), sub-category Oil and gas extraction (07000)          Gas compression and reinjection assets

 

Omit

                   Generally (including piping, skid, vessels                          assets used onshore)

30

*#

1 Jul 2002

 

Substitute

                   Generally (including piping, skid, vessels and                  assets used onshore)

30

*#

1 Jul 2002

 

 

[6]       Table A, industry category MANUFACTURING (11110 to 25990), sub-category Prepared animal and bird feed manufacturing (11920)

 

Omit

             Canning and tray assets including closers and              fillers

10

*

1 Jul 2013

 

Substitute

             Canning and tray assets (including closers and              fillers)

10

*

1 Jul 2013

 

 

[7]       Table A, industry category MANUFACTURING (11110 to 25990), sub-category Prepared animal and bird feed manufacturing (11920), Prepared animal and bird feed manufacturing assets generally

 

After

             Storage bins

20

*

1 Jul 2012

 

Insert

      Salt manufacturing and refining assets - see Table       A Basic inorganic chemical manufacturing (18130)

 

 

 

 

 

[8]       Table A, industry category MANUFACTURING (11110 to 25990), sub-category Other food product manufacturing n.e.c. (11990), Peanut processing assets

 

After

      Refrigeration units

20

*

1 Jul 2009

 

Insert

      Salt manufacturing and refining assets - see Table       A Basic inorganic chemical manufacturing (18130)

 

 

 

 

 

[9]       Table A, industry category MANUFACTURING (11110 to 25990), sub-category Clothing manufacturing (13510)

 

Omit

Clothing manufacturing

(13510)

ASSET

LIFE (YEARS)

REVIEWED

DATE OF APPLICATION

Clothing and millinery manufacturing plant:

 

 

 

      General plant

20

 

1 Jan 2001

      Hat manufacturing plant and machinery

131/3

 

1 Jan 2001

      Sewing machines

10

*

1 Jul 2014

 

Substitute

Clothing manufacturing

(13510)

ASSET

LIFE (YEARS)

REVIEWED

DATE OF APPLICATION

Air compressors

10

*

1 Jul 2022

Cutting machines and tables

20

*

1 Jul 2022

Dyeing machines

10

*

1 Jul 2022

Fusing machines and presses

8

*

1 Jul 2022

Gas boilers (steam)

15

*

1 Jul 2022

Hat pressing machines

20

*

1 Jul 2022

Lights – portable

5

*

1 Jul 2022

Plotters and printers

8

*

1 Jul 2022

Pressing equipment (including ironing tables and steam boilers)

 

10

 

*

 

1 Jul 2022

Sewing machines:

 

 

 

      Banding

15

*

1 Jul 2022

      Button sewer, clip attaching

5

*

1 Jul 2022

      Embroidery – single and multi-head

12

*

1 Jul 2022

      General (including bar tack, binding, feed off the       arm, single folder, two-needle, underwire)

10

*

1 Jul 2022

      High speed industrial

10

*

1 Jul 2022

      Millinery

20

*

1 Jul 2022

      Overlocker

15

*

1 Jul 2022

Steamers

2

*

1 Jul 2022

Stud setting machines

20

*

1 Jul 2022

 

 

[10]     Table A, industry category MANUFACTURING (11110 to 25990), sub-category Footwear manufacturing (13520)

 

Omit

Footwear manufacturing

(13520)

 

Substitute

Footwear manufacturing

(13520)

 

 

[11]     Table A, industry category MANUFACTURING (11110 to 25990), sub-category Basic inorganic chemical manufacturing (18130)

 

Omit

Salt manufacturing and refining plant

10

 

1 Jan 2001

 

Substitute

 

Salt manufacturing and refining assets:

 

 

 

      Air compressors – see Table B Air compression       assets: Air compression assets generally (including       air compressors, air dryers and air receivers)

 

 

 

 

      Augers

10

*

1 Jul 2022

 

      Automated packing machines

20

*

1 Jul 2022

 

      Bagging machines

10

*

1 Jul 2022

 

      Bag sewers – see Table B Packaging machines: Bag       sewers

 

 

 

 

      Bag stackers

15

*

1 Jul 2022

 

      Belt weighers

15

*

1 Jul 2022

 

      Blow moulders

15

*

1 Jul 2022

 

      Bucket elevators

10

*

1 Jul 2022

 

      Centrifuges

12

*

1 Jul 2022

 

      Conveyors

15

*

1 Jul 2022

 

      Crushers

25

*

1 Jul 2022

 

      Cyclones

15

*

1 Jul 2022

 

      Dust extraction systems

5

*

1 Jul 2022

 

      Forklifts – see Table B Forklifts

 

 

 

 

      Kilns

20

*

1 Jul 2022

 

      Labelling machines (including date printers)

5

*

1 Jul 2022

 

      Metal detectors

10

*

1 Jul 2022

 

      Motor control centres

20

*

1 Jul 2022

 

      Net weighers

5

*

1 Jul 2022

 

      Pallet wrappers – see Table B Packaging machines:       Wrapping machines (including pallet wrappers, shrink wrappers, stretch wrappers and strapping machines)

 

 

 

 

      Platform scales

10

*

1 Jul 2022

 

      Ribbon mixers

15

*

1 Jul 2022

 

      Roller mills

15

*

1 Jul 2022

 

      Rotary valves

15

*

1 Jul 2022

 

      Salt flake growing tanks

15

*

1 Jul 2022

 

      Salt hoppers

15

*

1 Jul 2022

 

      Sizing screen machines

15

*

1 Jul 2022

 

      Slurry lines

10

*

1 Jul 2022

 

      Wash plant pumps

15

*

1 Jul 2022

 

      Wash plants (removable)

20

*

1 Jul 2022

 

      Weigh feeders

10

*

1 Jul 2022

 

 

 

[12]     Table A, industry category MANUFACTURING (11110 to 25990), sub-category Iron smelting and steel manufacturing (21100)

 

Omit

      CCTV system

3

*

1 Jul 2010

 

Substitute

      CCTV systems

3

*

1 Jul 2010

 

 

[13]     Table A, industry category MANUFACTURING (11110 to 25990), sub-category Non‑ferrous metal casting (21410)

 

Omit

Metal casting assets (non‑ferrous eg aluminium, brass and magnesium):

 

 

 

 

Substitute

Metal casting assets (non‑ferrous e.g. aluminium, brass and magnesium):

 

 

 

 

 

[14]     Table A, industry category MANUFACTURING (11110 to 25990), sub-category Motor vehicle manufacturing (23110) Motor vehicle manufacturing plant (not listed elsewhere)

 

Omit

      Tooling (ie jigs, dies, press tools and specialty       attachments such as working heads and work‑      holding tools)

  3

 

1 Jan 2001

 

Substitute

      Tooling (i.e. jigs, dies, press tools and specialty       attachments such as working heads and work‑holding tools)

3

 

1 Jan 2001

 

 

[15]     Table A, industry category MANUFACTURING (11110 to 25990), sub-category Other transport equipment manufacturing n.e.c. (23990)

 

Omit

Motor cycle building plant

10

 

1 Jan 2001

 

Substitute

Motorcycle building plant

10

 

1 Jan 2001

 

 

[16]     Table A, industry category MANUFACTURING (11110 to 25990), sub-category Wooden furniture and upholstered seat manufacturing (25110)

 

Omit

Wooden furniture and upholstered seat manufacturing

(25110)

ASSET

LIFE (YEARS)

REVIEWED

DATE OF APPLICATION

Furniture‑making plant

131/3

 

1 Jan 2001

 

Substitute

Wooden furniture and upholstered seat manufacturing

(25110)

ASSET

LIFE (YEARS)

REVIEWED

DATE OF APPLICATION

Dust management assets:

 

 

 

      Portable dust extractors

5

*

1 Jul 2022

      Portable wet and dry vacuum cleaners

5

*

1 Jul 2022

      Stationary dust collection systems (incorporating       bags, motors, pipes etc)

12

*

1 Jul 2022

Spray booth assets:

 

 

 

      Full face air fed masks

3

*

1 Jul 2022

      Paint pumps

5

*

1 Jul 2022

      Spray booths

15

*

1 Jul 2022

      Spray guns

3

*

1 Jul 2022

Support assets:

 

 

 

      Air compression assets – see Table B Air       compression assets

 

 

 

      Air compressors (portable) – see Table B Air       compressors (portable)

 

 

 

      Forklifts – see Table B Forklifts

 

 

 

      Racks

15

*

1 Jul 2022

      Trolleys (carts)

10

*

1 Jul 2022

      Vacuum lifters

5

*

1 Jul 2022

      Work benches and tables

10

*

1 Jul 2022

Tools:

 

 

 

      Benchtop power tools (including biscuit/domino       joiners, drill presses, jigsaws, laminate trimmers,       mortisers, planners, routers, spindle sanders etc but       excluding saws)

5

*

1 Jul 2022

      Clamps

10

*

1 Jul 2022

      Hand held power tools (including air, battery, and       electric) - see Table B Power tools, hand tools

 

 

 

      Hand tools (manual operated) - see Table B Hand       tools (manual operated)

 

 

 

      Sawing machines:

 

 

 

             Band saws

8

*

1 Jul 2022

             Circular saws

8

*

1 Jul 2022

             Mitre saws (drop saws)

7

*

1 Jul 2022

             Panel saws

8

*

1 Jul 2022

             Table saws

10

*

1 Jul 2022

      Stationary machines:

 

 

 

             Computer numerical control (CNC) machines                    (including CNC routers)

10

*

1 Jul 2022

             Edge banders

8

*

1 Jul 2022

             Pedestal drills (drill presses)

10

*

1 Jul 2022

             Sanders (including belt sanders, drum sanders,              edge sanders, spindle sanders etc)

12

*

1 Jul 2022

             Spindle moulders

10

*

1 Jul 2022

             Thicknessers/Buzzers

15

*

1 Jul 2022

Upholstery assets:

 

 

 

      CNC fabric cutters

10

*

1 Jul 2022

      Hand fabric cutters

5

*

1 Jul 2022

      Sewing machines

10

*

1 Jul 2022

 

 

[17]     Table A, industry category RETAIL TRADE (39110 to 43209)

 

After

Overhead track scales (including meat rail scales)

10

*

1 Jul 2005

 

Insert

Plastic safety screens (including sneeze guards)

2

*

1 Jul 2022

 

 

[18]     Table A, industry category RETAIL TRADE (39110 to 43209), sub-category Motor vehicle tyre or tube retailing (39220)

 

Omit

      Air receivers

10

*

1 Jul 2011

      Air driers and dehumidifiers

10

*

1 Jul 2011

 

Substitute

      Air driers and dehumidifiers

10

*

1 Jul 2011

      Air receivers

10

*

1 Jul 2011

 

 

[19]     Table A, industry category ACCOMMODATION AND FOOD SERVICES

(44000 to 45302), sub-category Cafes, restaurants, takeaway food services, pubs, taverns, bars and clubs (hospitality) (45110 to 45302)

 

Omit

Menu boards

5

*

1 Jul 2005

Poker/gaming machines

7

*

1 Jul 2009

 

Substitute

Menu boards

5

*

1 Jul 2005

Plastic safety screens (including sneeze guards)

2

*

1 Jul 2022

Poker/gaming assets – see Table A Casino operations (92010)

 

 

 

 

 

[20]     Table A, industry category TRANSPORT, POSTAL AND WAREHOUSING (46100 to 53090), sub-category Road transport (46100 to 46239)

 

Omit

             Hire cars:

 

 

 

                   Cars used to provide basic service                                ride‑sourcing, ride‑hailing or ride‑sharing                          services (eg uberX)

8

*

1 Jul 2016

                   Generally (including cars used to provide                          premium service ride‑sourcing, ride‑hailing or                                     ride‑sharing services eg UberBLACK)

6

*

1 Jul 2016

 

Substitute

             Hire cars:

 

 

 

                   Cars used to provide basic service                                ride‑sourcing, ride‑hailing or ride‑sharing                          services (e.g. uberX)

8

*

1 Jul 2016

                   Generally (including cars used to provide                          premium service ride‑sourcing, ride‑hailing or                                     ride‑sharing services e.g. UberBLACK)

6

*

1 Jul 2016

 

 

[21]     Table A, industry category INFORMATION MEDIA AND TELECOMMUNICATIONS (54110 to 60200), sub-category Telecommunications services (58010 to 58090)

 

Omit

      Microwave radio system (including modulator,       demodulator, receiver, transmitter,       monitoring/supervisory system, RF filter)

 

 

 

 

Substitute

      Microwave radio system (including modulator,       demodulator, receiver, transmitter,       monitoring/supervisory system, RF filter):

 

 

 

 

 

[22]     Table A, industry category RENTAL, HIRING AND REAL ESTATE SERVICES

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

(66110 to 66400)

 

Omit

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

 

Substitute

Portable structures (sheds, site office trailers, portable toilets and washrooms etc) used for a temporary period in offsite locations (e.g. construction sites)

10

*

1 Jul 2014

 

 

[23]     Table A, industry category RENTAL, HIRING AND REAL ESTATE SERVICES

(66110 to 67200), sub-category Residential property operators (67110), Outdoor assets

 

Omit

      Roller blinds

 

 

 

 

Substitute

      Roller blinds:

 

 

 

 

 

[24]     Table A, industry category RENTAL, HIRING AND REAL ESTATE SERVICES

(66110 to 67200), sub-category Residential property operators (67110), Security and monitoring assets, Security systems

 

Omit

             Global System for Mobiles (GSM) Units

5

*

1 Jul 2004

 

Substitute

             Global System for Mobiles (GSM) units

5

*

1 Jul 2004

 

 

[25]     Table A, industry category HEALTH CARE AND SOCIAL ASSISTANCE

(84010 to 87900), sub-category Retirement village and accommodation for the aged operation (86011 to 86012)

 

Omit

      Chairs

 

 

 

 

Substitute

      Chairs:

 

 

 

 

 

[26]     Table A, industry category HEALTH CARE AND SOCIAL ASSISTANCE

(84010 to 87900), sub-category Retirement village and accommodation for the aged operation (86011 to 86012)

 

Omit

      Hoists

 

 

 

             Ceiling (incorporating tracks)

12

*

1 Jul 2019

             Mobile (floor, full, standing)

10

*

1 Jul 2019

      Lifting slings

2

*

1 Jul 2019

      Mattresses

 

 

 

 

Substitute

      Hoists:

 

 

 

             Ceiling (incorporating tracks)

12

*

1 Jul 2019

             Mobile (floor, full, standing)

10

*

1 Jul 2019

      Lifting slings

2

*

1 Jul 2019

      Mattresses:

 

 

 

 

 

[27]     Table A, industry category ARTS AND RECREATION SERVICES (89100 to 92099), sub-category Creative and performing arts activities (90010 to 90030)

 

Omit

Theatre equipment:

 

 

 

      Accessories (theatrical – wigs, costumes etc)

5

 

1 Jan 2001

Performing dogs – see Table B Working dogs

 

 

 

 

Substitute

Performing dogs – see Table B Working dogs

 

 

 

Theatre equipment:

 

 

 

      Accessories (theatrical – wigs, costumes etc)

5

 

1 Jan 2001

 

 

[28]     Table A, industry category ARTS AND RECREATION SERVICES (89100 to 92099), sub-category Gambling activities (92010 to 92099)

 

Omit

Poker/gaming machines

7

*

1 Jul 2009

 

Substitute

Poker/gaming assets – see Table A Casino operations (92010)

 

 

 

 

 

[29]     Table A, industry category ARTS AND RECREATION SERVICES (89100 to 92099), sub-category Gambling activities (92010 to 92099)

 

Omit

      Ancillary equipment (eg ticket issuing machines)

131/3

 

1 Jan 2001

 

Substitute

      Ancillary equipment (e.g. ticket issuing machines)

131/3

 

1 Jan 2001

 

 

[30]     Table A, industry category ARTS AND RECREATION SERVICES (89100 to 92099), after sub-category Gambling activities (92010 to 92099)

 

Insert

Casino operations

(92010)

ASSET

LIFE (YEARS)

REVIEWED

DATE OF APPLICATION

Carpets

8

*

1 Jul 2022

Count and cage assets:

 

 

 

      Coin scales

10

*

1 Jul 2022

      Counterfeit detectors

8

*

1 Jul 2022

      Note counters/sorters/verifiers

6

*

1 Jul 2022

      Trolleys

10

*

1 Jul 2022

Electronic table games (including keno games, poker games, rapid games)

6

*

1 Jul 2022

Entertainment assets:

 

 

 

      Audio (including amplifiers, microphones, speakers,       processors)

5

*

1 Jul 2022

      Visual (including televisions, DVD players)

5

*

1 Jul 2022

Gaming signage (including digital displays, jackpot displays, LED/LCD video walls and partitions)

5

*

1 Jul 2022

Gaming stools and chairs

5

*

1 Jul 2022

Gaming tables (including blackjack, poker, roulette)

7

*

1 Jul 2022

Poker/gaming machines

6

*

1 Jul 2022

Poker/gaming machines system hardware (used for monitoring)

6

*

1 Jul 2022

Security and monitoring assets – see Table B Security and monitoring assets

 

 

 

Table game equipment:

 

 

 

      Big wheels

7

*

1 Jul 2022

      Card shufflers

5

*

1 Jul 2022

      Chippers

5

*

1 Jul 2022

      Chips and plaques

10

*

1 Jul 2022

      Dealer handset devices

5

*

1 Jul 2022

      Display screens

5

*

1 Jul 2022

      Roulette wheels

7

*

1 Jul 2022

      Shoes (electronic type)

5

*

1 Jul 2022

 

 

[31]     Heading to Table B

 

Omit

Table B as at 1 July 2021

 

Substitute

Table B as at 1 July 2022

 

 

[32]     Table B, items beginning with A

 

Omit

      Other accommodation units (eg manufactured       homes)

30

*

1 Jul 2015

 

Substitute

      Other accommodation units (e.g. manufactured       homes)

30

*

1 Jul 2015

 

 

[33]     Table B, items beginning with E

 

After

ASSET

LIFE (YEARS)

REVIEWED

DATE OF APPLICATION

 

Insert

Electric bicycles (e-bicycles and e-bikes)

4

*

1 July 2022

Electric scooters (e-scooters)

2

*

1 July 2022

 

 

[34]     Table B, items beginning with M

 

Omit

             Hire cars:

 

 

 

                   Cars used to provide basic service
                   ride-sourcing, ride-hailing or ride-sharing                          services (eg uberX)

8

*

1 Jul 2016

                   Generally (including cars used to provide                          premium service ride-sourcing, ride-hailing or               ride-sharing services eg UberBLACK)

6

*

1 Jul 2016

 

Substitute

             Hire cars:

 

 

 

                   Cars used to provide basic service
                   ride-sourcing, ride-hailing or ride-sharing                          services (e.g. uberX)

8

*

1 Jul 2016

                   Generally (including cars used to provide                          premium service ride-sourcing, ride-hailing or               ride-sharing services e.g. UberBLACK)

6

*

1 Jul 2016

 

 

[35]     Table B, items beginning with P

 

After

Partitions (demountable)

20

*

1 Jul 2005

 

Insert

Plastic safety screens (including sneeze guards)

2

*

1 July 2022

 

 

[36]     Table B, items beginning with P

 

Omit

Portable structures (sheds, site office trailers, portable toilets and washrooms etc) used for a temporary period in offsite locations (eg construction sites)

15

*

1 Jul 2014

 

Substitute

Portable structures (sheds, site office trailers, portable toilets and washrooms etc) used for a temporary period in offsite locations (e.g. construction sites)

15

*

1 Jul 2014