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  • Capital allowances: review of e-bicycles and e-scooters

    We have started a review of e-bicycles and e-scooters with a view to making 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 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's anticipated the review will cover assets, namely:

    • e-bicycles and e-scooters.

    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
    • consult with major interest groups, such as
      • industry representative bodies
      • users and suppliers (including interviews and site asset inspections)
       
    • complete a report with recommendations for new effective lives based on analysis of the factors listed in the effective life taxation ruling.

    See also:

    • 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 in the review, contact:

    Christina Parker

    or

    Kim Dziedzic

    For more information about the review process, including examples of the type of questions we like to ask industry members, refer to Capital allowances: effective life reviews – general information

    For more information about reviews we have already completed, refer to Capital allowances: completed effective life reviews.

      Last modified: 07 Jul 2021QC 65847