New Tax Ruling 2016/1

The Australian Taxation Office has released a new Tax Ruling (TR) 2016/1.

The Australian Taxation Office has released a new Tax Ruling (TR) 2016/1.Replacing Tax Ruling 2015/2, Tax Ruling 2016/1 outlines the effective lives for all assets when calculating depreciation deductions for plant and equipment items.

Replacing Tax Ruling 2015/2, Tax Ruling 2016/1 outlines the effective lives for all assets when calculating depreciation deductions for plant and equipment items.

As the time in which an asset was acquired determines the effective life used, previously approved determinations can still be used for assets acquired within periods stipulated by previous rulings.

Some industries with assets affected by the changes to effective lives outlined in Table A of the ruling include agriculture, dairy cattle farming and confectionery manufacturing.

Assets listed under Table B with changed effective lives include floor coverings such as carpets, floating timber, linoleum and vinyl. Waste storage and disposal bins and window blinds are also affected.

The new determinations outlined in TR 2016/1 apply from the 1st of July 2016.

For a copy of the tax ruling, email newruling@bmtqs.com.au.

To search and find the effective life and depreciable rate for any asset, visit bmtqs.com.au/rate-finder