Gary Swanson - Australian Tax Of

The Tax Office is currently reviewing assets used by Primary Producers in the Aquaculture Industry to earn assessable income. You can have your say in how the effective lives of assets used by primary producers in the aquaculture industry are determined. (In other words, how long you have to write-off, or depreciate a piece of equipment, or asset.)

The Commissioner’s effective lives are considered to be ‘safe harbour lives’ and will not be challenged in any audit process. You do not have to use the Commissioners effective life. You can self-assess the asset’s effective life if your circumstances of use are different to the industry norm.

Effective life is the period of time that a depreciating asset can be used by any entity to produce assessable income, subject to certain conditions. You can claim a deduction in your tax return for the decline in value of the cost of a depreciating asset over its effective life.

The review process will involve consultation with growers, manufacturers and associations to identify depreciating assets used in the aquaculture industry. From this consultation an industry specific list of depreciating assets and effective lives will be developed and sent to all participants for comment. This process is reviewed by a panel consisting of external members of industry and other taxation officers before the new lives are finalised.

Any advice received during the consultation process, will be used only for the purposes of the review. All information is treated as commercial-in-confidence.

		The old pump, she ain't worth fixin no more !
	Gary Swanson - Australian Tax Office
	Gary is Tax office veteran of 25 years. He has been part of the Effective Life Team for 3 years during which he has completed reviews of a number of industries including telecommunications and plant hire. This team is part of a Centre of Expertise within the Office of the Chief Tax Counsel and is committed to providing assistance and guidance to taxpayers by making the Commissioner's 'safe harbour' lives more relevant and timely.
	The Tax Office is currently reviewing assets used by Primary Producers in the Aquaculture Industry to earn assessable income. You can have your say in how the effective lives of assets used by primary producers in the aquaculture industry are determined. (In other words, how long you have to write-off, or depreciate a piece of equipment, or asset.) The Commissioner’s effective lives are considered to be ‘safe harbour lives’ and will not be challenged in any audit process. You do not have to use the Commissioners effective life. You can self-assess the asset’s effective life if your circumstances of use are different to the industry norm. Effective life is the period of time that a depreciating asset can be used by any entity to produce assessable income, subject to certain conditions. You can claim a deduction in your tax return for the decline in value of the cost of a depreciating asset over its effective life. The review process will involve consultation with growers, manufacturers and associations to identify depreciating assets used in the aquaculture industry. From this consultation an industry specific list of depreciating assets and effective lives will be developed and sent to all participants for comment. This process is reviewed by a panel consisting of external members of industry and other taxation officers before the new lives are finalised. Any advice received during the consultation process, will be used only for the purposes of the review. All information is treated as commercial-in-confidence.