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  • Capital allowances: draft effective lives of assets in horse training (racing) industry

    We are seeking comments from interested parties on the draft list of effective lives for assets used in the horse training (racing) industry.

    Comments are open until 12 March 2021.

    Proposed new determinations

    We propose adding the following list of effective life determinations to the Commissioner's schedule. This will apply to assets purchased or otherwise first used or installed ready for use, on or after 1 July 2021 (within the meaning of section 40-95 of the Income Tax Assessment Act 1997).

    Proposed list of assets used in horse training (racing) industry (ANZSIC code 91292)

    All assets proposed in this determination will take effect from 1 July 2021 (excluding Table B assets).

    Table 1: Arena and track maintenance assets

    Asset type

    Effective life (years)

    Arena rakes

    5

    Others (including grader blades, smudgers and levellers etc)

    10

    Quad bikes/All-terrain vehicles (ATVs)

    5

    Table 2: Racehorses

    Asset type

    Effective life (years)

    Flat racing (thoroughbred horses)

    5

    Harness racing (standardbred horses)

    7

    Jumps racing (thoroughbred horses)

    10

    Lead and companion ponies (horses)

    5

    Table 3: Support assets

    Asset type

    Effective life (years)

    Horse floats

    20

    Horse rugs (including turnout rugs)

    2

    Horse tack (including bits, bridles, harnesses (hobbles), headgear and saddles etc)

    4

    Horse trucks – see Table B Motor vehicles and trailers

     

    Platform scales

    7

    Rubber mats

    5

    Security and monitoring assets - see Table B Security and monitoring assets

     

    Tackroom furniture, freestanding (including lockers, racks and seats etc)

    10

    Washing machines (used for washing horse rugs and saddle pads etc)

    3

    Table 4: Training and rehabilitation assets

    Asset type

    Effective life (years)

    Barriers

    15

    Horse training pools

    30

    Horse training pool assets:

    Cleaning assets

    Filtration assets (including pumps)

     
    5

    8

    Stables, portable types

    15

    Sulkies

    2

    Treadmills (including water types)

    15

    Walkers (including water walkers)

    20

    See also:

    • TR 2020/3 Income tax: effective life of depreciating assets
    • TR 2020/3 Income tax: effective life depreciating assets – Table B

    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 your recommended effective life and why.

    Send your comments or questions to Susan Li by 12 March 2021 via:

      Last modified: 19 Feb 2021QC 64802