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  • Capital allowances: draft effective lives of assets used in the spirit manufacturing industry

    We are seeking your comments on the draft list of effective lives we are releasing for assets used in the spirit manufacturing industry. Comments are open until 22 December 2017.

    Proposed new determinations

    We propose to add 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 2018 (within the meaning of section 40-95 of the Income Tax Assessment Act 1997).

    Spirit manufacturing (ANZSIC code 12130)

    Barrels, tanks and tuns

    Asset

    Life (years)

    Barrels or casks (wooden): Capacity greater than 150 litres

    10

    Barrels or casks (wooden): Capacity of 150 litres or less

    4

    Fermenters and washbacks

    30

    Intermediate Bulk Containers (IBC)

    8

    Mash tuns and lauter tuns

    20

    Mixing, blending and holding tanks, chargers, spirit receivers and vats

    25

    Bottling assets

    Asset

    Life (years)

    Bottle fillers: Automated (including bottle rinsers/washers, cappers, capsule applicators, foilers)

    15

    Bottle fillers: Manual

    7

    Labellers

    10

    Printers and ink coders

    8

    Distillation assets

    Asset

    Life (years)

    Laboratory and testing assets (including alcoholmeters, alcolyzers, density meters, gas chromatographs, Graham condensers, homogenisers, hydrometers, Inland revenue condensers and sugar testers)

    7

    Stainless steel stills (continuous/vacuum stills, marc stills producing grape spirit, neutral spirit or potable ethanol: [incorporating analyser/stripping columns, purifier columns, rectifying columns, condensers and dephlegmators/reflux condensers, and methanol/fusel oil isolators])

    25

    Stills generally (copper stills, pot stills, spirit stills and wash stills: [incorporating botanical baskets, condensers, head tubes/necks, rectifiers, rectifying columns, and still columns])

    15

    Support assets

    Asset

    Life (years)

    Barrel racks

    20

    CCTV, security and monitoring systems assets – see Table B Security and monitoring assets

     

    Chillers

    15

    Floor scales (platform scales)

    10

    Flow meters

    10

    Furnaces, barley smokers, crispers, and malt kilns

    15

    Gristmills

    15

    Heat exchangers (plate or tube)

    15

    PLC system assets – see Table B Control systems and control system assets

     

    Pumps (including macerating pumps)

    7

    Water filters, reverse osmosis RO filters, and water softeners

    10

    Water heating assets: Boilers – see Table B

     

    Water heating assets: Water heaters (including small steam boilers [up to 500KW])

    10

    See also:

    • TR 2017/2 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 why a different effective life should be recommended.

    Send your comments or questions to John Gallo by 22 December 2017:

      Last modified: 29 Nov 2017QC 53978