The ATO has issued the annual taxation ruling which contains the effective life of depreciating assets under s 40-100 of ITAA 1997. Taxation Ruling TR 2020/3 contains new effective life determinations which have been incorporated into Tables A and B in the Schedule to TR 2020/3.
Table A is an industry category table listing assets that are peculiar to a particular industry or for which a particular effective life is appropriate because of the way the asset is used in that industry.
Table B covers assets generally.
Taxpayers in industry can only use Table B entries if the particular asset is not listed under the relevant industry heading in Table A.
The ruling comes into effect from 1 July 2020.
The ruling replaces TR 2019/5, which is withdrawn with effect from 1 July 2020.
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