Assets - Recent ATO Changes
On 20 June 2002 the Tax Office announced new effective
lives for a range of depreciating assets.
new effective lives are part of a comprehensive review
being conducted by the Commissioner of Taxation of his
"safe harbour" depreciation schedule.
effective life of a depreciating asset is used to work
out the deduction available for the asset under the capital
New effective lives include:
reviews have been conducted in close consultation with
industry to ensure the determinations accurately reflect
the effective lives of assets specific to each industry
changes, which took effect from 1 July 2002, only affect
assets acquired after that date.
way the Tax Office works out the effective life of an
asset is set out in Taxation Ruling TR 2000/18 which can
be found on the ATO website (refer to our Links page),
or you can contact your Accountant at Perry Ure for more
New effective life of cars:
effective life of cars has been increased from 6 2/3 years
to 8 years. The last review was in 1936.