From the 1st of July 2018, new effective life rulings have been in affect that govern how plant and equipment assets are depreciated. The new ruling is TR 2018/4 and replaces TR 2017/2 (I don’t know how they come up with such whacky names).
If you happen to be in any of the following industries, new determinations apply;
- butter manufacturing
- fruit and vegetable processing
- gas, oil and mining support services (excluding offshore services)
- ice cream manufacturing
- scientific testing and analysis services
- spirit manufacturing.
The good news for residential property investors is that nothing has changed. You can see the current effective lives for all residential plant and equipment items here https://www.mcgqs.com.au/ato-effective-lives-2019-2020-depreciation-rates.php
If you’re interested in how effective lives are created, you can check out our article on that here.