We have started a review of assets used in the railway locomotive and rolling stock design, engineering and manufacturing industries as defined by ANZSIC codes 23930 and 69230.
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 railway locomotive and rolling stock design, engineering and manufacturing 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.
The review will cover all assets used to design, engineer and manufacture railway locomotive and rolling stock.
We expect our review of these assets to be completed within 12 months, with new effective life determinations applying from 1 July 2013. The draft effective lives will be issued for public comment 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 the 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, 31 May 2012