Taxation Ruling

TR 2022/1

Income tax: effective life of depreciating assets (applicable from 1 July 2022)

  • Please note that the PDF version is the authorised version of this ruling.
    This Ruling, which applies from 1 July 2022, replaces TR 2021/3 (see paragraph 6 of this Ruling for further details).

M

M
ASSET LIFE
(YEARS)
REVIEWED DATE OF
APPLICATION
Machine tools (grinding machines, lathes, milling machines etc):
    CNC and NC based machines 10     *     1 Jul 2014
    Conventional or manual machines 20     *     1 Jul 2014
Mini-skid steer loaders (with a carrying capacity less than or equal to 1100 kg) 5     *     1 Jul 2005
Mini-skid steer loader attachments:
    Others (including auger and bucket) 5     *     1 Jan 2004
    Stump grinders 2     *     1 Jan 2004
Motor graders 10     *     1 Jul 2002
Motor vehicles and trailers:
    Buses having a gross vehicle mass of more than 3.5 tonnes [51] 15     *#     1 Jan 2005
    Cars (motor vehicles designed to carry a load of less than one tonne and fewer than 9 passengers):
        Generally 8     *     1 Jan 2006
        Hire cars [52] :
            Cars used to provide basic service ride-sourcing, ride-hailing or ride-sharing services (e.g. uberX) 8     *     1 Jul 2016
            Generally (including cars used to provide premium service ride-sourcing, ride-hailing or ride-sharing services e.g. UberBLACK) 6     *     1 Jul 2016
        Rental cars [53] 5     *     1 Jul 2016
        Taxis 4     *     1 Jul 2015
    Garbage compactor trucks - see Table A Solid waste collection services (29110)
    Light commercial vehicles designed to carry a load of one tonne or greater and having a gross vehicle mass of 3.5 tonnes or less [54] 12     *#     1 Jan 2005
    Limousines:
        Sedan limousines 6     *     1 Jul 2016
        Stretch limousines 12     *     1 Jul 2016
    Minibuses having a gross vehicle mass of 3.5 tonnes or less and designed to carry 9 or more passengers [55] 12     *#     1 Jan 2005
    Motorcycles (including courier motorcycles and mailbox delivery motorcycles) 7     *     1 Jul 2015
    Scooters 3     *     1 Jul 2015
    Trailers having a gross vehicle mass greater than 4.5 tonnes [56] 15     *#     1 Jan 2005
    Trailers having a gross vehicle mass of 4.5 tonnes or less:
        Aluminium, galvanised steel, galvanised hot dipped steel and powder coated trailers 10     *     1 Jul 2015
        Mild steel trailers (painted and unpainted) 5     *     1 Jul 2015
    Trucks having a gross vehicle mass greater than 3.5 tonnes (excluding off highway trucks used in mining operations) [57] 15     *#     1 Jan 2005
Moving walks 20     *     1 Jan 2003
Musical instruments and associated equipment:
    Associated portable equipment (including amplifiers, microphones, speakers, mixers and music stands) 6   2/3     *     1 Jan 2001
    Brass instruments (including bugles, cornets, euphoniums, horns, sousaphones, trombones, trumpets and tubas) 10     *     1 Jan 2001
    Keyboard instruments (including accordions, concertinas, organs, pianolas and pianos):
        Acoustic 10     *     1 Jan 2001
        Electric 5     *     1 Jan 2001
    Percussion instruments (including chimes, cymbals, drums, gongs, maracas and tambourines) 5     *     1 Jan 2001
    Stringed instruments (including banjos, basses, cellos, guitars, harps, mandolins, tiples, ukuleles, violas and violins) 10     *     1 Jan 2001
    Woodwind instruments (including bagpipes, bassoons, clarinets, flutes, oboes, pan pipes, piccolos and recorders) 10     *     1 Jan 2001

References

ATO references:
NO 1-SY3H7A0

Previous Rulings/Determinations:
TR 2017/2
TR 2018/4
TR 2019/5
TR 2020/3
TR 2021/3

ISSN: 2205-6122

Subject References:
depreciation
depreciation rate
effective life

Business Line:  PGI

Legislative References:
ITAA 1997 Div 40
ITAA 1997 40-25
ITAA 1997 40-25(7)
ITAA 1997 40-70(1)
ITAA 1997 40-72(1)
ITAA 1997 40-75(1)
ITAA 1997 40-95
ITAA 1997 40-95(4)
ITAA 1997 40-95(5)
ITAA 1997 40-95(7)
ITAA 1997 40-100
ITAA 1997 40-100(5)
ITAA 1997 40-100(6)(b)
ITAA 1997 40-102
ITAA 1997 40-102(4)
ITAA 1997 40-102(4A)
ITAA 1997 40-102(5)
ITAA 1997 40-105
ITAA 1997 40-110
ITAA 1997 40-345(2)
IT(TP)A 1997 Subdiv 40-BB

Other References:
Income Tax (Effective Life of Depreciating Assets) Amendment Determination (No 1) 2022


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