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  • Taxation Ruling TR 2019/4

    We have released Taxation Ruling TR 2019/4: Income tax: capital allowances: expenditure incurred by a service provider in collecting and processing multi-client seismic data

    This ruling provides certainty for those who collect and licence seismic data to the mining sector.

    The ruling sets out that if you conduct seismic surveys and licence the resulting data to multiple clients, or otherwise exploit the survey results, you are creating a depreciating asset. The cost of acquiring that data, considered a business asset, is depreciated over a 15 year effective life, as is prescribed by a change to taxation law in 2014. In some instances the asset’s cost may be deductible based on the first use of the asset.

    The ruling applies from the issue date 18 September 2019 and retrospectively in some cases. In practice, the 15 year tax depreciation period will apply to data acquired after 14 May 2013, due to the 2014 law change.

    If you have any questions or require further information about how Taxation Ruling TR 2019/4 applies to your circumstances, email PGIPAGUnit@ato.gov.au

    Last modified: 18 Sep 2019QC 60134