For most depreciating assets, you have a choice to either work out the effective life yourself or use an effective life determined by the Commissioner.
The choice must be made for the income year in which the asset's start time occurs. Generally, the choice must be made by the time you lodge your income tax return for that year.
However, the choice is not available:
- for most intangible depreciating assets see Effective life of intangible depreciating assets
- if a depreciating asset is acquired from an associate who claimed or could have claimed deductions for the asset's decline in value see Depreciating asset acquired from an associate
- for a depreciating asset which you start to hold but the user of the asset does not change or is an associate of the former user-for example, under a sale and leaseback arrangement see Sale and leaseback arrangements
- if there has been roll-over relief see Roll-over relief.