Following my previous Blog on December 15 – “Effective lives of Assets in Car Parking” , The ATO has once again been hard at work reviewing the effective lives of plant in particular property and other industry sectors. They have proposed to implement the following new determinations and be effective as of July 1 2016.

The ATO has researched and established new effective lives of depreciating assets for an industry  sector named Robotic Milking Systems (which comes under the ANZSIC sector of Dairy cattle farming (ANZSIC code 01600).

Refer to this link, if this is of interest to you. 

Another Sector they have reviewed is Milk and cream processing (ANZSIC code 11310), here too is a new list of depreciating assets with effective lives to use when your business is within this industry and if you need to claim depreciation deductions on your investments.  Review this link, if you are within this industry type.

And finally the old chestnut,  the property industry generally and in particular importance to the residential sector, the following items have been adjusted:

• Ceiling fans now have an effective life of 10 years not 20.
• Carpets now have an effective life of 10 years not 8.
• Light fittings and freestanding lights now have an effective life of 10 years not 20.
• Window Blinds now have an effective life of 15 years not 20.

In summarising, basically if the effective life reduces, you can claim more tax deductions earlier.

You can view these changes here.

Once again we will review all the proposed effective lives from the ATO and will provide commentary back to them where appropriate.

Should you wish to discuss your property and ensure you are maximising your tax deductions and therefore your after tax cash position, please do not hesitate to contact any of our Property Depreciation Managers throughout Australia.

Remember, June 30 is only a couple of months away, so get your property investments sorted early and maximise your claim while you can!! Before the game changes again.

Paul Mazoletti
National Tax Director