Taxation Ruling
IT 2435
Income tax : rate of depreciation for demountable strongrooms
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FOI status:
May be releasedFOI number: I 1206559FACTS
A demountable strongroom is a modular steel vault used by banks and financial institutions. It is comprised of standard, lightweight steel panels which are assembled on the bank's premises to form the strongroom. The joints between the panels are sealed with a high temperature sealing grout. The assembled strongroom stands on a concrete base and may be expanded by inserting additional panels, disassembled and relocated.
RULING
2. In view of its modular design and portability a demountable strongroom is accepted as plant for the purposes of section 54 of the Income Tax Assessment Act.
3. Available information indicates that the effective life of a demountable strongroom would be approximately 100 years. Accordingly, an annual prime cost depreciation rate of 1% has been fixed under sub-section 55(1). The general depreciation loading under section 57AG and the accelerated prime cost depreciation provisions of section 57AL will apply in appropriate circumstances.
COMMISSIONER OF TAXATION
6 August 1987