Effective Lives

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.