THE AUSTRALIAN TAXATION OFFICE has released a new tax ruling effective from the 1st of July 2015.
Replacing Tax Ruling 2014/4, Tax Ruling 2015/2 outlines the effective lives for all assets when calculating depreciation deductions for plant and equipment items.
Previously approved determinations can still be used, as the tax ruling in effect at the time an asset is acquired determines the effective life used.
Industries with changed effective lives include:
- Waste collection
- Treatment and disposal services
- Postal and courier services
- Surveying and mapping services
- Machinery equipment repairs and maintenance
- Rental and hiring service industries
- Professional photographic services
Assets with new effective lives include:
A number of assets in Table B of TR 2015/2 now have new effective lives.
- Digital cameras
- Control cabinets and panels
- Plumbing fixtures and fittings
- Telephone systems
- Fixed and rotary wing aerial vehicles
Bottom Line: For a full copy of the tax ruling, which outlines all effective lives, simply email here.