We have started a review of the prefabricated concrete panel manufacturing industry, as a business defined within ANZSIC code 20340, with a view to making new effective life determinations.
Taxpayers use effective lives to work out how much they can claim as a tax deduction for an asset's decline in value (depreciation deduction). The purpose of our review is to ensure our effective life determinations cover all assets that are commonly used by the prefabricated concrete panel manufacturing industry, and reflect current industry practices and expectations. Our determinations operate as a 'safe harbour' for taxpayers. The option of self-assessing effective lives is also available.
Scope of the review
The review will cover all assets used to produce prefabricated concrete panels.
We expect our review of these assets to be completed within 12 months, with new effective life determinations applying from 1 July 2013. Draft effective lives will be issued for public comment well before final decisions are made.
How we will conduct the review
As part of this review, we will:
- identify the assets currently used in the industry
- consult (including via interviews and asset inspections) with major interest groups such as industry representative bodies, users and suppliers
- complete a report with recommendations for new effective lives based on analysis of the 14 factors listed in the effective life ruling
- remove redundant items currently in the effective life schedule.
Participating in the review
Participation in the review process is entirely voluntary. However, we find that strong participation from an industry gives them confidence that we will properly consider their range of experience, and that the determinations will be useful to industry members.
If you would like to participate in the review, contact John Di Francesco by:
What to read/do next
For information about:
Last Modified: Wednesday, 30 March 2011