THE AUSTRALIAN Taxation Office (ATO) has released a new tax ruling — effective from the 1st of July 2013.
Tax Ruling 2013/04
Replacing Tax Ruling 2012/2 , Tax Ruling 2013/4 explains the methods you should use when determining the effective lives of depreciating assets.
While Table B of Tax Ruling 2013/4 lists the effective lives of depreciable assets currently recognised by the ATO.
Roll Out of New Effective Lives
The tax ruling in effect at the time you acquired an asset determines the effective life of that asset. Therefore, any changes the ATO have made to the effective lives of assets in Tax Ruling 2013/4 — only affect assets purchased and installed for use after the 1st of July 2013.
If you purchase a depreciating asset for use within a five year period … then the effective life that applies is the one in force at the date that the depreciating asset is first used or installed ready to use.
If you would like a full copy of the new ruling and the assets with new effective lives for any of the above mentioned industries, please email email@example.com.
Bottom Line: If you are looking for up to date information about the effective life of any plant and equipment assets you can use the BMT Rate Finder.
There you can search by industry or asset and it will show you the effective life and depreciation rate using either the prime cost or diminishing value method.
For any other queries regarding claiming depreciation in your industry, feel free to contact BMT Tax Depreciation.