Information about our review of the effective life of assets used to manufacture pet and animal food.
We have started a review of the prepared pet food and animal food manufacturing industries as defined by ANZSIC code 11920 with a view to making new effective life determinations.
Effective lives are used by taxpayers to work out how much they can claim as a deduction for an asset's decline in value (depreciation deduction). The purpose of our review is to ensure our effective life determinations cover all of the assets commonly used by the prepared pet food and animal food 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.
The review will cover all assets used to manufacture prepared pet food and animal food. The primary activities being reviewed are:
- pet food canning, preparing and manufacturing
- animal feed preparing and manufacturing
- cereal, fodder and grain manufacturing for animal feed.
The review will not cover the assets used to:
- slaughter animals for pet food - these are covered in the meat processing industry review
- manufacture rice or rye, meal or offal for use as fodder - these are covered in the grain mill product manufacturing industry review.
We expect our review of these assets to be completed within 12 months, with new effective life determinations applying from 1 July 2012. Draft effective lives will be issued for public comment well before final decisions are made.
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 effective life ruling
- remove redundant items currently in the effective life schedule.
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 Mike Doyle by:
For information about:
Last Modified: Thursday, 12 May 2011