Capital Allowances: Draft Effective Lives of Assets used in Transfer Stations and Landfill Services

Published March 31, 2015 | By Napier & Blakeley

The following is a recent release from the ATO and their understanding of new Effective Lives which can now be used for depreciation purposes, effective from July 2015 for the Transfer Station and Landfill industry sectors.

They are seeking comments on a draft list of Effective Lives they are releasing for assets used in Transfer Stations and Landfill services.

Proposed new determinations

They are proposing to add the following list of Effective Life determinations to the Commissioner’s schedule to apply to new assets either purchased and first used, or installed ready to use, on or after 1 July 2015 (within the meaning of section 40-95 of the Income Tax Assessment Act 1997). The effective life listed below for each asset basically determines the depreciation rate e.g.: 20 life years = a basic rate of 5% per annum can be claimed on the cost of the item to the income producing taxpayer.

# A capped effective life of 10 years is available for trailers having a gross vehicle mass greater than 4.5 tonnes – see subsection 40-102(4) of the Income Tax Assessment Act 1997.

Comments

If you have an interest in these draft Effective Lives, the ATO invites you to comment. If you disagree with a proposed Effective Life, tell them why a different effective life should be recommended. We can pass on your comments to the ATO. Email us at property@napierblakeley.com.

Contact

If you have built, bought or sold any property in the last 12 months, you may need an updated report to reflect your Effective Lives in the Transfer Stations and Landfill Services sector or any other sector.

The ATO continually update and analyse industry sectors, and thus so do we.

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