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  • Capital allowances: effective life review for funeral, crematorium and cemetery services industry assets

    We have started a review of the assets used in the funeral, crematorium and cemetery services industries (ANZSIC code 95200) with a view to making new effective life determinations.

    You use effective lives to work out how much you can claim as a tax deduction for an asset's decline in value (depreciation deduction).

    The purpose of our review is to ensure our effective life determinations cover all assets commonly used by your industry, and reflect current industry practices and expectations. Our determinations provide you with 'safe harbour lives'. You also have the option to self-assess effective lives.

    Scope of the review

    It is anticipated that the review will cover human and animal segments of the industry, namely:

    • funeral services
    • crematorium services
    • cemetery services.

    Other segments of the industry may or may not be reviewed.

    We expect to complete our review of these assets within 12 months, with new effective life determinations applying from 1 July 2019. Draft effective lives will be issued for public comment well before final decisions are made.

    How we will conduct the review

    As part of this review, we will:

    • identify the assets currently used in the industry
    • consult with major interest groups, such as industry representative bodies, users and suppliers (including using interviews and site asset inspections)
    • complete a report with recommendations for new effective lives based on an analysis of the factors listed in the effective life taxation ruling
    • remove any redundant items currently in the effective life schedule.

    See also:

    • TR 2019/5 Income Tax Taxation Ruling shows the effective life of depreciating assets (applicable from 1 July 2019)

    Participating in the review

    Participation in the review process is entirely voluntary. However, strong participation from an industry gives its members confidence that we will properly consider their range of experience, and that the determinations will be useful to industry members.

    • If you would like to participate in the review, contact Adam Vigar by  

    See also:

      Last modified: 31 Jul 2019QC 58941