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  • Capital allowances: draft effective life of assets used in supermarket and grocery stores

    We are seeking your comments on the draft list of effective lives for assets used in the supermarket and grocery stores industry.

    Comments are open until 23 March 2020.

    Proposed new determinations

    We propose adding the following list of effective life determinations to the Commissioner of Taxation's schedule. These will apply to assets purchased (or otherwise first used or installed ready to use) on or after 1 July 2020 (within the meaning of section 40-95 of the Income Tax Assessment Act 1997).

    Supermarket and grocery stores (ANZSIC 41100)

    All effective lives of assets proposed in this determination take effect from 1 July 2020 (excluding assets with a reference of 'See Table B')

    Bakery assets

    Asset type

    Effective life (years)

    Bakery display assets, non-refrigerated (including freestanding display cabinets, cases, racks, stands and shelves)

    10

    Bakery trolleys

    12

    Bread slicers

    10

    Bun divider rounders

    10

    Doughnut making machines

    8

    Hydraulic dough dividers

    10

    Mixers (including planetary and spiral mixers)

    10

    Moulders

    12

    Ovens

    10

    Provers and retarder provers

    8

    Butcher assets

    Asset type

    Effective life (years)

    Bandsaws

    10

    Meat: mincers

    10

    Meat: tenderisers

    10

    Meat trolleys

    12

    Sausage filling machines

    10

    Deli assets

    Asset type

    Effective life (years)

    Cheese cutters

    10

    Cheese graters

    10

    Coffee making machines (including espresso and drip filter type machines)

    5

    Contact grills

    10

    Deep fryers

    10

    Deli slicers

    10

    Hot food display assets (including bain marie and hot boxes)

    10

    Juicing machines, commercial type

    8

    Ovens (including chicken ovens and smoker ovens)

    10

    Pie warmers

    10

    Popcorn machines

    8

    Sushi making assets (including rice cookers, rice mixers and sushi robots)

    7

    Produce assets

    Asset type

    Effective life (years)

    Display barrels

    10

    Produce bins

    12

    Scales (including bench scales and hanging scales)

    8

    Refrigeration and freezing assets

    Asset type

    Effective life (years)

    Compressors, condensers and evaporators

    10

    Generally (including refrigeration cabinets and cases, standalone chillers, standalone freezers and standalone refrigerators)

    10

    Insulation panels used in cool or freezer rooms

    30

    Night blinds/covers

    10

    Support and other assets

    Asset type

    Effective life (years)

    Automatic entrance swing gates

    10

    Balers (for cardboard and plastic)

    See Table B: Warehouse and distribution centre equipment and machines

    Benches (stainless steel), free standing

    20

    Bin lifters

    15

    Cash handling assets: coin counters and sorters

    10

    Cash handling assets: note counters and sorters

    10

    Cash handling assets: safes

    25

    Cigarette cabinets, free standing

    15

    Counters, free standing (including checkout and service counters)

    10

    Dishwashers

    10

    Display racks and stands (including magazine racks/stands)

    10

    Hot water systems (excluding piping)

    12

    Label printers

    5

    Label printing scales

    8

    Labelling guns

    5

    Microwave ovens

    5

    Nut grinders/peanut butter makers

    5

    Packaging assets: automatic wrapping, modified atmosphere packaging (MAP) and vacuum chamber packaging machines)

    10

    Packaging assets: bench wrappers/heat wrappers

    10

    Point of sale assets: generally (excluding self-checkout registers)

    See Table B: Point of sale assets

    Point of sale assets: self-checkout registers

    6

    Power generators (emergency or standby)

    See Table B: Power supply assets, Emergency or standby

    Racking

    20

    Range hood exhaust fans

    12

    Safety steps

    10

    Shelving

    15

    Signage: aisle signs

    7

    Signage: others (such as advertising signs and signage for business identification)

    See Table B: Advertising signs

    Stock ladders

    12

    Trolleys, customer shopping type

    7

    Trolleys, stock type (including roll cages, platform trolleys, etc)

    10

    UV insect exterminators

    7

    See also:

    • TR 2019/5 Income tax: effective life of depreciating assets

    Tell us what you think

    We welcome your comments and feedback on these draft effective lives. If you disagree with a proposed effective life, tell us your recommendation for a different effective life and why.

    Send your comments or questions to Shirley Liao by 23 March 2020 by either:

      Last modified: 24 Feb 2020QC 61528