Capital allowances: law and rulings

Capital allowances

Primary legislative references

New Business Tax System (Capital Allowances) Act 2001

Division 40 of the Income Tax Assessment Act 1997

Depreciating assets

Primary legislative reference

Subdivision 40-B of the Income Tax Assessment Act 1997

Effective life

Primary legislative references

Sections 40-95, 40-100 and 40-105 of the Income Tax Assessment Act 1997

Taxation rulings

Taxation Ruling IT 2685 – ‘Income tax: depreciation’ (Withdrawn as of 1 January 2001). Taxation ruling containing the Commissioner's determination of the effective life for various items of plant.

Taxation Ruling TR 2000/18W – ‘Income tax: effective life of depreciating assets’ (Withdrawn as of 1 July 2006). Taxation ruling containing the Commissioner's determination of the effective life for various depreciating assets. Ruling applies from 1 January 2001.

Taxation Ruling TR 2006/5W – ‘Income tax: effective life of depreciating assets’ (Withdrawn as of 1 January 2007). Taxation ruling containing the Commissioner's determination of the effective life for various depreciating assets. Ruling applies from 1 July 2006.

Taxation Ruling TR 2006/15W – ‘Income tax: effective life of depreciating assets’ (Withdrawn as of 1 July 2007). Taxation ruling containing the Commissioner's determination of the effective life for various depreciating assets. Ruling applies from 1 January 2007.

Taxation Ruling TR 2007/3W – ‘Income tax: effective life of depreciating assets’ (Withdrawn as of 1 July 2008). Taxation ruling containing the Commissioner's determination of the effective life for various depreciating assets. Ruling applies from 1 July 2007.

Taxation Ruling TR 2008/4W – ‘Income tax: effective life of depreciating assets’. (Withdrawn as of 1 July 2009) Taxation ruling containing the Commissioner's determination of the effective life for various depreciating assets. Ruling applies from 1 July 2008.

Taxation Ruling TR 2009/4 – ‘Income tax: effective life of depreciating assets’. Taxation ruling containing the Commissioner's determination of the effective life for various depreciating assets. Ruling applies from 1 July 2009.

Effective lives are published in tables attached to taxation rulings relating to the effective life of depreciating assets. Previously, these tables were updated and revised every six months by an addendum to one ruling (TR 2000/18). There were several such addenda to Taxation Ruling TR 2000/18. The publication of Taxation Ruling TR 2006/5 saw the practice of periodically updating the tables by issuing a new ruling.

Low cost assets

Practice statement

Practice Statement PS LA 2003/8 – ‘Taxation treatment of expenditure on low cost items for taxpayers carrying on a business’

Low-value pools

Primary legislative reference

Subdivision 40-E of the Income Tax Assessment Act 1997

What to read/do next

Visit the Capital allowances homepage.

Last Modified: Friday, 4 September 2009