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.
NoteTable 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.
NoteIf 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