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NBtax Tax Depreciation Schedules | Licenced Tax Agents & Quantity Surveyors

Plant & Equipment Asset Amendments

Effective Life of Plant & Equipment

From 1 July 2019, changes to the Effective Life of Assets listed as Plant & Equipment Items (Division 40) will take affect impacting depreciation allowances for residential property owners. The effective life refers to the length of time an asset can be depreciated. 

In total 32 items have been changed or added to the Effective Life of Asset List in TR 2018/4. Our assessment shows the depreciation life of 16 assets has been reduced. A further 16 new items have been added to the list and now eligible to be included as per Section 40-95 of the Income Tax Assessment Act 1997 for residential property owners (ANZSIC 67110). 

Items affected include:

  • floor coverings, carpet – 8 years 
  • home automation control assets – 10 years
  • hydronic assets, water heater – 15 years
  • skylights controls and motors – 10 years each
  • dishwasher, microwave oven – 8 years
  • washing machine – 8 years 
  • clothes dryer – 7 years
  • swimming pool assets, blankets – 8 years
  • chlorinators, filtration, pumps - 10 years each. 

Owners of existing residential investment properties will NOT be affected, as the legislation is grandfathered. New plant and equipment purchased for existing properties will be subject to the amendments to the Effective Life of Assets list as of 1 July 2019.  

 

** Reference source ATO