A new tax ruling already in place determines the effective life of depreciating assets. Source: Timberbiz
The Australian Taxation Office (ATO) has released a new tax ruling effective from the 1 July 2013.
Tax Ruling 2013/4 replaces Tax Ruling 2012/2 and explains the methods to be used when determining the effective lives of depreciating assets.
Table B of Tax Ruling 2013/4 lists the effective lives of depreciable assets currently recognised by the ATO.
The tax ruling in effect at the time an asset is acquired determines the effective life of that asset.
These changes under Tax Ruling 2013/4 will only affect assets purchased and installed for use after 1 July 2013.
If a depreciating asset has been purchased for use within a five-year period, the effective life that will apply is the one in force from the date the depreciating asset is first used or installed ready to use.
