Document ID: chunk:federal_register_of_legislation:C2004A00844:clause:1_10:p8
Version: federal_register_of_legislation:C2004A00844
Segment Type: clause
Provision Reference: sch 1 cl 10 (pt 8/13)
Character Range: 39217–43620

hold it.

 (6) However, you must use an *effective life determined by the Commissioner if:
 (a) you do not know, and cannot readily find out, which effective life the former holder was using; or
 (b) the former holder did not use an effective life.

Exception: intangible depreciating assets

 (7) The effective life of an intangible *depreciating asset mentioned in this table is the period applicable to that asset under the table.

Effective life of certain intangible depreciating assets
Item                                                      For this asset:                                                       The effective life is:
  1                                                       Standard patent                                                       20 years
  2                                                       Innovation patent                                                     8 years
  3                                                       Petty patent                                                          6 years
  4                                                       Registered design                                                     15 years
  5                                                       Copyright                                                             The shorter of:

                                                                                                                                (a) 25 years from when you acquire the copyright; or
                                                                                                                                (b) the period until the copyright ends
  6                                                       A licence (except one relating to a copyright or *in‑house software)  The term of the licence
  7                                                       A licence relating to a copyright                                     The shorter of:

                                                                                                                                (a) 25 years from when you become the licensee; or
                                                                                                                                (b) the period until the licence ends
  8                                                       *In‑house software                                                    21/2 years
  9                                                       *Spectrum licence                                                     The term of the licence
  10                                                      *Datacasting transmitter licence                                      15 years

 (8) The effective life of an intangible *depreciating asset that is not mentioned in the table in subsection (7) and is not an *IRU (for example, a *mining, quarrying or prospecting right) cannot be longer than the term of the asset as extended by any reasonably assured extension or renewal of that term.

 (9) The effective life of an *IRU is the *effective life of the international telecommunications submarine cable over which the IRU is granted.

40‑100  Commissioner's determination of effective life

 (1) The Commissioner may make a written determination specifying the effective life of *depreciating assets. The determination may specify conditions for particular depreciating assets.

 (2) A determination may specify a day from which it takes effect for *depreciating assets specified in the determination.

 (3) A determination may operate retrospectively to a day specified in the determination if:
 (a) there was no applicable determination at that day for the *depreciating asset covered by the determination; or
 (b) the determination specifies a shorter *effective life for the depreciating asset covered by the determination than was previously applicable.

 (4) The Commissioner is to make a determination of the effective life of a *depreciating asset by estimating the period (in years, including fractions of years) it can be used by any entity for a *taxable purpose or for the purpose of producing *exempt income:
 (a) assuming it will be subject to wear and tear at a rate that is reasonable for the Commissioner to assume; and
 (b) assuming it will be maintained in reasonably good order and condition; and
 (c) having