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).

R

R
ASSET LIFE
(YEARS)
REVIEWED DATE OF
APPLICATION
Racehorses:
    Flat racing (thoroughbred horses) 5     *     1 Jul 2021
    Harness racing (standardbred horses) 7     *     1 Jul 2021
    Jumps racing (thoroughbred horses) 10     *     1 Jul 2021
    Lead and companion ponies (horses) 5     *     1 Jul 2021
Rainwater tanks:
    Galvanised steel 25     *     1 Jul 2019
    Polyethylene 15     *     1 Jul 2019
Refrigeration assets:
    Compressors, condensers, evaporators etc 15     *     1 Jul 2014
    Insulation panels used in cool or freezer rooms 40     *     1 Jul 2014
Robots (industrial) 10     *     1 Jul 2014
S
ASSET LIFE
(YEARS)
REVIEWED DATE OF
APPLICATION
Saws, bench and mitre, portable 7     *     1 Jul 2008
Security and monitoring assets:
    Access control systems:
        Code pads 5     *     1 Jul 2004
        Door controllers 5     *     1 Jul 2004
        Readers:
            Proximity 7     *     1 Jul 2004
            Swipe card 3     *     1 Jul 2004
    Ballistic and blast resistant screens and barriers (including fixed and rising types) not forming part of the building 20     *     1 Jul 2014
    CCTV systems:
        Cameras 4     *     1 Jul 2004
        Monitors 4     *     1 Jul 2004
        Recorders:
            Digital 4     *     1 Jul 2004
            Time lapse 2     *     1 Jul 2004
        Switching units (including multiplexers) 5     *     1 Jul 2004
    Security systems:
        Code pads 5     *     1 Jul 2004
        Control panels 5     *     1 Jul 2004
        Detectors (including glass, passive infrared and vibration) 5     *     1 Jul 2004
        Global system for mobiles (GSM) units 5     *     1 Jul 2004
        Noise maker (including alarms and bells) 5     *     1 Jul 2004
Sewing machines 10     *     1 Jul 2014
Signage for business identification (including lighting for signs) - see Table B Advertising signs
Silos:
    Bulk handling:
        Ancillary mechanical assets (including augers, bucket elevators, conveyors etc) 15     *     1 Jul 2014
        Concrete construction 50     *     1 Jan 2004
        Galvanised construction 30     *     1 Jan 2004
        Steel construction 40     *     1 Jan 2004
Solar photovoltaic electricity generation system assets 20     *     1 Jul 2011
Spas used as plant in a business (incorporating blowers, controls, filters, heaters and pumps) 17     *     1 Jul 2014
Spray booths 15     *     1 Jul 2014
Stacks (chimney stacks, exhaust stacks, flues etc):
    Concrete stacks (including concrete reinforced stacks) 30     *     1 Jul 2014
    Flare stacks 25     *     1 Jul 2014
    Reinforced plastic stacks 25     *     1 Jul 2014
    Steel stacks (steel flues) 20     *     1 Jul 2014
Suitcases 10     *     1 Jul 2013
Swimming pool assets:
    Chlorinators 12     *     1 Jul 2004
    Cleaning assets 7     *     1 Jul 2004
    Covers (including blankets) 8     *     1 Jul 2019
    Filtration assets (including pumps) 12     *     1 Jul 2004
    Heaters:
        Electric 15     *     1 Jul 2004
        Gas 15     *     1 Jul 2004
        Solar 20     *     1 Jul 2004
    Swimming pools (used as plant in a business):
        Above-ground 10     *     1 Jul 2005
        Concrete 50     *     1 Jul 2005
        Fibreglass 20     *     1 Jul 2005
Switchboards 20     *     1 Jul 2014
Synthetic lawn surfaces 5     *     1 Jul 2014

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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