We have started a review of assets used in the flour and starch manufacturing industry, defined by ANZSIC code 11610, 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 review will ensure our effective life determinations cover all assets commonly used by the flour and starch 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 produce flour and starch.
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.
As part of this review, we will:
- identify the assets 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 in the effective life schedule.
Participation in the review process is 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 Greg Daly by:
For information about:
- the review process, including examples of the type of questions we like to ask industry members, refer to Capital allowances: effective life reviews - general information.
- reviews we have already completed, refer to completed effective life reviews.
Last Modified: Thursday, 29 March 2012