Show download pdf controls
  • Effective life

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    You can either make your own estimate of the effective life of the plant or adopt the effective life determined by the Commissioner. The matters you need to take into account if you decide to make your own estimate of effective life are explained in the Guide to Depreciation.

    The effective life for an item of plant as determined by the Commissioner is found in Taxation Ruling IT 2685-depreciation and Taxation Ruling TR 2000/18-Income tax: depreciation effective life. IT 2685 was issued on 11 June 1992 and remained in force until it was replaced by TR 2000/18 which came into force on 1 January 2001. If you decide to use the effective life determined by the Commissioner you generally use the effective life contained in the particular taxation ruling that was in force at the time you entered into a contract to acquire the plant.

    Extracts fromTaxation Ruling IT 2685 andTaxation Ruling TR 2000/18 showing changes in the effective lives of some commonly used items in rental properties

    Item

    Effective life in years given in

    IT 2685

    TR 2000/18

    Blind, venetian

    20

    20

    Carpet

    10

    10

    Curtains and drapes

    7

    6 2/3

    Electric bed

    15

    13 1/3

    Electric clock

    15

    13 1/3

    Electric heater

    10

    10

    Furniture and fittings

    15

    13 1/3

    Garbage unit, compacting

    7

    6 2/3

    Hot water service

    20

    20

    Lawn mowers-motors

    7

    6 2/3

    Lawn mowers-self propelled

    5

    5

    Linoleum and similar floor coverings

    10

    10

    Microwave ovens

    7

    6 2/3

    Radios

    10

    10

    Refrigerators

    15

    13 1/3

    Stoves

    20

    20

    Television sets

    10

    10

    Vacuum cleaners

    10

    10

    Washing machines

    7

    6 2/3

    Some items found in a rental property are regarded as part of the setting for the rent producing activity and do not qualify as separate items of depreciable items of plant in their own right. However, a deduction may be allowed for some of these items under the Capital works deduction-special building write-off provisions. Examples of such items are:

    • built-in kitchen cupboards
    • clothes hoists
    • door and window fittings
    • driveways and paths
    • electrical wiring
    • fencing and retaining walls
    • floor and wall tiles
    • garages and non-portable sheds
    • in-ground swimming pools, saunas and spas
    • plumbing and gas fittings
    • reticulation piping
    • roller door shutters
    • roof top ventilators and skylights
    • security doors and screens which are permanently fixed to the building
    • sinks, tubs and baths, and
    • wash basins and toilet bowls.
    Last modified: 28 Jul 2003QC 16187