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The Federal Government’s main revenue collection agency. Information on taxation, superannuation and GST. You can also look for your lost superannuation.

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Do a search on the ATO\'s legal database for the latest case decisions, public rulings, determinations, taxpayer alerts and much more

Guide to Depreciating Assets 2005-06

Download a copy of the ATO’s publication on Depreciating Assets. Covers deductions you can claim for depreciating assets and other capital expenditure. Get an insight into What is a depreciating asset, low-value pools, effective life, work out decline in value.



Rental Properties 2006

Download a copy of the ATO’s publication on Depreciating Assets. Covers deductions you can claim for depreciating assets and other capital expenditure. Get an insight into What is a depreciating asset, low-value pools, effective life, work out decline in value.



Taxation Ruling TR 2000/18 (withdrawn as at 1 July 2006)
View Taxation Ruling TR 2000/18. The Commissioner will periodically make determinations to update and amend the effective life tables contained in the Schedule to this Ruling. To assist taxpayers to determine the relevant effective life of a depreciating asset the ATO have prepared unofficial versions of the Ruling that incorporate changes to the Ruling made by Addenda and the relevant consolidated Tables A, B and F of the Schedule to the Ruling.

Taxation Ruling TR 2006/15 (Effective 1 January 2007) -replaces TR 2000/18 * TR2006/5)

What this Ruling is about

1. This Ruling discusses the methodology used by the Commissioner of Taxation in making determinations of the effective life of depreciating assets under section 40-100 of the Income Tax Assessment Act 1997 (ITAA 1997).

2. The effective life of a depreciating asset is used to work out the asset\'s decline in value. To the extent the asset is used for a taxable purpose, a deduction may be available, under Division 40 of the ITAA 1997, for its decline in value. However some depreciating assets, depending on the circumstances of use, may qualify for capital works deductions under Division 43 of the ITAA 1997.

3. Determinations of the effective life of depreciating assets made by the Commissioner are reproduced in Tables A and B of the attached schedule. These determinations are not appropriate to calculate capital works deductions for depreciating assets that qualify for Division 43 of the ITAA 1997. Depreciating assets that qualify for capital works deductions under Division 43 may only have deductions worked out by the method specified in that Division.

4. You may choose to use the Commissioner\'s determination of the effective life of a depreciating asset or you may make your own estimate (see section 40-95 of the ITAA 1997). The explanation in this Ruling of the methodology used by the Commissioner in making determinations may assist taxpayers who choose to make their own estimate of effective life.  

Previous Rulings

5. This Ruling replaces Taxation Ruling TR 2000/18 Income tax: depreciation effective life and all the accompanying addenda and are withdrawn on and from 1 July 2006. To the extent that the Tax Office views in those Rulings still apply, they have been incorporated into this Ruling.



 


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