The Australian Taxation Office (ATO) released a new tax ruling effective from the 1st of July 2012 which affects owners of commercial investment properties.
Replacing Tax Ruling 2011/2, Tax Ruling 2012/2 explains the method to be used when determining the effective lives of depreciating assets. The tax ruling in effect at the time an asset is acquired determines the effective life of that asset. For this reason, despite the new changes, determinations previously approved can continue to be used.
While many assets have not been affected, changes have been made to the effective lives of assets in the following industries:
- Animal feed manufacturing;
- Coffee manufacturing;
- Concrete producing manufacturing;
- Concrete product manufacturing;
- Edible oil or fat (blended) manufacturing;
- Ethanol manufacturing;
- Frozen pre-prepared meals and selected snacks manufacturing;
- Health and fitness centre operations;
- Motor vehicle manufacturing;
- Radio broadcasting;
- Steel coil roll forming, slitting, blanking and sheet metal forming;
- Sheet metal tank manufacturing; and
- Tea manufacturing.
BMT Tax Depreciation prepares depreciation reports for a wide range of commercial sectors. For any queries regarding claiming depreciation in these industries, please do not hesitate to contact BMT for further information. Please email firstname.lastname@example.org if you would like to receive a copy of this new ruling.