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  • Capital allowances: review of plastic safety screens

    We have started a review of plastic safety screens (commonly referred to as 'sneeze guards') used to prevent the spread of COVID-19 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

    The review is expected to cover plastic safety screens ('sneeze guards').

    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 where the assets are currently used
    • consult with major interest groups, such as 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.

    See also:

    • TR 2020/3 Income tax: effective life of depreciating assets (applicable from 1 July 2020)

    Participating in the review

    Participation in the review process is voluntary. However, we find strong participation from users gives users confidence that we will properly consider their range of experience, and that the determinations will be helpful to users.

    If you would like to participate in the review, contact:

    Zoe Purvis

    or

    John Di Francesco

    See also:

      Last modified: 07 Jun 2021QC 65851