Can you alter the effective life you are using?

You can choose to recalculate the effective life you are using for an income year if your circumstances of use change and the effective life you have been using is no longer accurate.

You can do this irrespective of whether you are using our estimate or your own and you can recalculate each time your circumstances change. In addition, if you make an improvement to an asset that results in its cost increasing by 10% or more in an income year, you may be obliged to recalculate the effective life.

See also:

    Last modified: 22 Aug 2016QC 16297