Australia Issues Final Rules on the Life of Depreciable Assets

Australia released final guidance Tuesday setting the effective lives of different types of depreciating assets.

The effective life of a depreciating asset is the period when it’s expected to be used to produce income, which helps determine how much of the asset’s cost taxpayers can claim as a deduction each year.

The new guidance sets the effective lives for different kinds of assets “based on how long they typically last in real-world business use,” the Australian Tax Office said.

• The ATO finalized the guidance following a consultation in June. It replaces a previous legislative instrument from 2015, which sunsets on ...