Taxation Ruling
IT 2407W - Withdrawal
Income tax: depreciation of distance measuring devices
-
Please note that the PDF version is the authorised version of this withdrawal notice.
FOI status:
may be releasedNotice of Withdrawal
Taxation Ruling IT 2407 is withdrawn with effect from today.
1. Taxation Ruling IT 2407, which issued on 11 June 1987, deals with the application of subsection 54(1) of the Income Tax Assessment Act 1936 (ITAA 1936) to circumstances where a distance measuring device is installed on a vehicle for the purposes of the Federal Interstate Registration Scheme (FIRS). For the purposes of subsection 54(1), the distance measuring device is considered to form part of the vehicle to which it is attached. This means that the cost of the device, including installation costs, is added to the cost of the vehicle for depreciation purposes and depreciated at the rate applicable to the vehicle.
2. The FIRS requires owners of vehicles engaged solely in interstate transport operations to pay registration charges. Under section 15 of the Interstate Road Transport Act 1985, these registration charges could previously be paid by way of a flat annual fee or on the basis of actual distance travelled. If registration charges were levied on the distance travelled approved distance measuring devices had to be installed to measure the distance travelled by the vehicle.
3. Section 15 of the Interstate Road Transport Act 1985 was repealed with effect from 1 July 1995 (Interstate Road Transport Amendment Act 1995 (No. 50 of 1995). The amendment removed the option to pay registration charges based on actual distance travelled using a distance measuring device.
4. As Taxation Ruling IT 2407 no longer applies, it is withdrawn.
Commissioner of Taxation
15 December 2004