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  • Capital allowances: draft effective life of assets used in the aircraft manufacturing and repair services industry

    We are seeking your comments on the draft list of effective lives for assets used in the aircraft manufacturing and repair services industry.

    Comments are open until 28 February 2020.

    Proposed new determinations

    We propose adding the following list of effective life determinations to the Commissioner's schedule to 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).

    Aircraft manufacturing and repair services industry (23940)

    All assets proposed in this determination take effect from 1 July 2020 (excluding Table B assets).

    List of assets:

    Asset

    Effective life (years)

    Air compression assets generally including air compressors, air dryers and air receivers but excluding portable air compressors

    13

    Air compression assets: portable reciprocating

    7

    Air compression assets: portable rotary screw

    10

    Aircraft testing and measurement equipment: instrumentation, dynamometers and calibrating equipment (including testing equipment for engines, radios)

    10

    Aircraft testing and measurement equipment: maintenance stands (including rigs and engine stands)

    20

    Aircraft testing and measurement equipment: test cell tunnels

    40

    Air start units

    15

    Benches and tables

    10

    Borescope equipment: fixed probes

    3

    Borescope equipment: flexible probes

    3

    Borescope equipment: light source

    5

    Borescope equipment: video scopes

    5

    Cabin pressurisation test units

    15

    Carbon fibre cutters used in manufacturing

    10

    Computer numerical control (CNC) machines

    10

    Cranes (gantry and overhead)

    25

    Degreasing machines (including washing machines)

    7

    Elevating work platforms: boom lifts

    15

    Elevating work platforms: personnel lifts

    10

    Elevating work platforms: scissor lifts

    10

    Hand tools, manual (including screw drivers, spanners, wrenches)

    10

    Hand tools, air powered

    5

    Hand tools, battery powered

    3

    Hand tools, electric powered

    5

    Hydraulic power units

    15

    Industrial autoclaves

    30

    Industrial ovens

    15

    Jacks

    10

    Maintenance work platforms

    20

    Measuring tools, manually operated (included vernier calipers, mirometers, depth gauges, tyre pressure gauges)

    5

    Metal working precision machines (including automatic lathes, milling machines, jig borers)

    10

    Mobile cranes

    10

    Nitrogen carts

    15

    Oxygen carts

    15

    Racks

    20

    Robots

    10

    Sandblasters

    7

    Sheet metal machines (including benders and folders, guillotines and roll formers)

    15

    Tow bars

    10

    Tow tractors generally (excluding remote controlled tugs)

    20

    Tow tractors: remote controlled tugs

    10

    Tyre bead breakers

    15

    Welders

    See table B

    See also:

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

    Tell us what you think

    If you have an interest in these draft effective lives we invite you to comment. If you disagree with a proposed effective life, tell us why a different effective life should be recommended.

    Send your comments or questions to John Di Francesco by 28 February 2020 by:

      Last modified: 11 Feb 2020QC 61382