Effective Life 2000/1


Commonwealth of Australia

Income Tax Assessment Act 1997

I, DAVID EDWARD BUTLER, First Assistant Commissioner, Business Tax Reform, delegate of the Commissioner, make this Determination under subsection 42-110(1) of the Income Tax Assessment Act 1997.

1 Name of Determination

This Determination is the Income Tax (Effective Life of Plant) Determination 2000.

2 Commencement

This Determination commences on 1 January 2001.

3 Revocation

All previous determinations of the effective life of plant for the purposes of the Income Tax Assessment Act 1997 are revoked.

4 Effective life of plant

(1)
For subsection 42-110 (1) of the Income Tax Assessment Act 1997, the effective life of plant is specified in Tables A and B.
(2)
If the entity depreciating plant is using the plant in an industry specified in Table A, Tables A and B are to be used as follows:

(a)
if the plant corresponds exactly to a description in Table A for the industry in which the plant is used, its effective life is the life specified for that plant;
(b)
if the plant:

(i)
does not correspond exactly to a description in Table A for the industry in which the plant is used; but
(ii)
satisfies the general description of plant used in the functional process of that industry -
its effective life is the life specified in Table A for that class of plant;

(c)
if:

(i)
paragraphs (a) and (b) do not apply to the plant; and
(ii)
the plant corresponds to a description in Table B -
its effective life is the life specified with that description.

Note
Table A is intended to describe plant:

that is peculiar to a particular industry; or
for which a particular effective life is appropriate because of the way in which a particular industry uses the plant.

The industry headings in Table A have, where possible, been drawn from the classification subject categories in the Australian New Zealand Standard Industrial Classification (ANZSIC) Codes.

(3)
If:

(a)
the entity depreciating plant is not using the plant in an industry specified in Table A; and
(b)
the plant corresponds to a description in Table B -
the effective life of the plant is the life specified with that description.
Note
If Tables A and B are not used, or cannot be used because:

the plant is not used in an industry specified in Table A; and
Table B has no description that corresponds to the plant -

the way to work out the effective life of the plant is explained in section 42-105 of the Income Tax Assessment Act 1997.



21 December 2000

DAVID EDWARD BUTLER,
First Assistant Commissioner, Business Tax Reform,
Delegate of the Commissioner