Document ID: chunk:federal_register_of_legislation:F2022C00749:reg:4
Version: federal_register_of_legislation:F2022C00749
Segment Type: reg
Provision Reference: reg 4
Character Range: 2439–4514

4  Effective Life of Depreciating Assets
 (1) For subsection 40-100(1) of the Income Tax Assessment Act 1997, the effective life of depreciating assets is specified in Tables A and B.
 (2) If the entity deducting an amount for a depreciating asset is using the asset in an industry specified in Table A, Tables A and B are to be used as follows:
 (a) if the asset corresponds exactly to a description in Table A for the industry in which the asset is used, its effective life is the life specified for that asset;
 (b) if the asset:
 (i) does not correspond exactly to a description in Table A for the industry in which the asset is used; but
 (ii) satisfies the general description of asset used in the functional process of that industry —
  its effective life is the life specified in Table A for that class of asset;
 (c) if:
 (i) paragraphs (a) and (b) do not apply to the asset; and
 (ii) the asset corresponds to a description in Table B —
   its effective life is the life specified with that description.
Note: Table A is intended to describe assets:
                 • that are peculiar to a particular industry; or
                 • for which a particular effective life is appropriate because of the way in which a particular industry uses the asset.
 The industry headings in Table A have, where possible, been drawn from the classification subject categories in the Australian and New Zealand Standard Industrial Classification (ANZSIC) Codes.
 (3) If:
 (a) the entity deducting an amount for a depreciating asset is not using the asset in an industry specified in Table A; and
 (b) the asset corresponds to a description in Table B—
the effective life of the asset is the life specified with that description.
Note: If Tables A and B are not used, or cannot be used because:
                 • the asset is not used in an industry specified in Table A; and
                 • Table B has no description that corresponds to the asset —
 the way to work out the effective life of the asset is explained in section 40-105 of the Income Tax Assessment Act 1997.