Taxation Ruling

IT 2590

Income tax : rate of depreciation for medical analyser systems

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FOI status:

May be releasedFOI number: I 1011977

PREAMBLE

This Ruling determines the rate of depreciation under section 55 of the Income Tax Assessment Act 1936 (the Act) for medical analyser systems.

FACTS

2. Medical analyser systems are used to perform routine analysis of blood samples in pathology laboratories and hospitals. The systems are discrete, fully selective analysis instruments which use integrated microprocessors. The integrated microprocessor controls the type of analysis, performs systems checks and calculates the result automatically. The system provides for graphical analysis of test results which may be printed out and which also may be stored on disk with other relevant patient information.

RULING

3. Available information indicates that the effective life of a medical analyser system is about 7 years. Accordingly, a prime cost rate of depreciation of 15% per annum has been fixed under subsection 55(1) of the Act.

COMMISSIONER OF TAXATION
7 June 1990

References

ATO references:
NO 87/7947-3
BO Syd 27/B5/AF3363/36

Date of effect:
Immediate

Date original memo issued:
25.03.88

Subject References:
DEPRECIATION
MEDICAL ANALYSER SYSTEMS

Legislative References:
54
55(1)