Effective life of depreciating assets from 1 July 2021

The Commissioner’s annual ruling on the effective life of depreciating assets was released on 30 June 2021. TR 2021/3 with effect from 1 July 2021, includes new effective life determinations for assets used in horse training (racing) and salt-harvesting activities.

The ATO has registered the Income Tax (Effective Life of Depreciating Assets) Amendment Determination (No 1) 2021. Made under s 40-100(1) of the ITAA 1997, it commences on 1 July 2021 and provides taxpayers in specific industries and for specific assets with effective lives as a basis to calculate the decline in value (depreciation) of a depreciating asset for income tax purposes.