Show download pdf controls
  • Capital allowances: review of assets used for salt manufacturing and refining (excluding harvesting)

    We have started a review of the assets used for salt manufacturing and refining defined within ANZSIC codes 11920, 11990 and 18130 with a view to making new effective life determinations.

    Effective lives are used 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 assets used by your industry
    • 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

    The review is expected to cover assets that relate to some primary activities, namely:

    • salt manufacturing (including industrial salt, cooking and table salt, and salt blocks for livestock)
    • salt packaging.

    We expect to complete our review of these assets within 12 months, with new effective life determinations applying from 1 July 2022. 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 or update redundant items currently in the effective life schedule.

    Find out more:

    • TR 2021/3 Income tax: effective life of depreciating assets (applicable from 1 July 2021)

    Participating in the review

    Participation in the review process is voluntary. However, we find 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, contact Andrey Chichkanov by:

    See also:

      Last modified: 07 Jul 2021QC 65839