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Capital allowances - solid and other waste collection, waste treatment, disposal and waste remediation and recovery industry asset - review to begin

 
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We have started a review of assets used in the solid and other waste collection, waste treatment and disposal, and waste remediation and recovery industries as defined by ANZSIC codes 29110, 29190, 29210 and 29220.

Effective lives are used to work out how much you can claim as a tax deduction for the decline in value of an asset (a depreciation deduction). The purpose of our review is to make sure our effective life determinations cover all assets that are commonly used by the solid and other waste collection, waste treatment and disposal, and waste remediation and recovery industries, and reflect current industry practices and expectations.

Our determinations provide you with confidence in the claims you make. You also have the option of self-assessing effective lives.

Scope of the review

The review will cover all assets used in solid and other waste collection, waste treatment and disposal, and waste remediation and recovery.

We expect our review of these assets to be completed within 18 months, with new effective life determinations applying from 1 July 2014. The draft effective lives will be issued for public comment 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 want to participate in the review, contact either:

What to read/do next

For information about:

Last Modified: Wednesday, 27 June 2012

 
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