Sand Processing

Tax rule shake-up for depreciating assets

The new ruling may impact on the value of some depreciating assets in quarry activities and plant. The changes outlined under Tax Ruling 2013/4 will only affect assets purchased and installed for use after 1 July 2013.
Tax Ruling 2013/4 replaces Tax Ruling 2012/2. It stipulates that the tax ruling in effect at the time an asset is acquired determines the effective life of that asset.
If a depreciating asset has been purchased for use within a five-year period, the effective life that will apply is the one in force from the date the depreciating asset is first used or installed ready to use. 
Table B of Tax Ruling 2013/4 lists the effective lives of depreciable assets currently recognised by the ATO.
The ruling is not expected to impact assets such as grinding and crushing mills, screens, feeders, conveyors, chutes, bins and earthmoving equipment. It may impact activities such as ammonia and ammonium nitrate manufacturing, non-ferrous metal casting, paint and coatings manufacturing and prefabricated concrete manufacturing.
For a full copy of the new ruling and details of the assets with new effective lives for the above industries, email BMT Tax Depreciation.
Source: BMT Tax Depreciation, Australian Taxation Office

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