Proposed new determinations effective asset lives in fruit and vegetable industry

The ATO propose to add the following list of effective life determinations to the Commissioner’s schedule to apply to assets purchased (or otherwise first used or installed ready-to-use) on or after 1 July 2018 (within the meaning of section 40-95 of the Income Tax Assessment Act 1997).

Tell the ATO what you think

The ATO is seeking comments on the draft list of effective lives to be released for assets used in the fruit and vegetable processing industry. Comments are open until 15 January 2018. If you disagree with a proposed effective life, tell them why a different effective life should be recommended.
Send your comments or questions to Kim Dziedzic by 15 January 2018:
• phone (07) 3213 5764
• fax (07) 3119 9901
• email kim.dziedzic@ato.gov.au

Fruit and vegetable processing (ANZSIC code 11400)

Dried fruit manufacturing assets (other than sun-dried)

Packaging assets:

Asset Life (years)
Box sealers (including taping machines) 10
Carton erecting, packing and closing machines (including cartoners) 15
Form, fill and seal machines see Table B Packaging machines
Labellers see Table B Packaging machines
Multihead weighers see Table B Packaging machines
Palletisers see Table B Packaging machines
Wrapping machines, including pallet wrappers. shrink wrappers and stretch wrappers – see Table B Packaging machines

Processing assets:

Aspirators 20
Cappers and destemmers 15
Cookers 15
Cooling tunnels 15
Drying assets (including dehydrators and dryers) 20
Mixers 15
Pitters 15
Riddles (including pre-riddles and rotary sieves) 15
Shaker tables 15
Sulphur tanks 15
Washing assets (including barrel washers, brush washers and ripple washers) 15

 

Product and raw material handling assets:

Asset Life (years)
Bins 10
Bin tippers 15
Conveyors and elevators 15

 

Quality control and inspection assets:

Asset Life (years)
Colour sorters and laser scanners 10
Inspection equipment including checkweighers, metal detectors see Table B Packaging machines
Testing equipment 15

 

Support assets:

Asset Life (years)
Coolrooms see Table B Refrigeration assets
Weighers 20

Canned, bottled or preserved fruit and vegetable manufacturing assets

Packaging assets:
Asset Life (years)
Carton erecting, packing and closing machines (including cartoners) 15
Labellers 10
Palletisers and depalletisers see Table B Packaging machines
Pallet wrappers and stretch wrappers see Table B Packaging machines

 

Filling and sealing assets:

Asset Life (years)
Canning assets (including can loaders, closers and seamers) 10
Capping machines: Cappers 10
Capping machines: Induction sealers 5
Filling machines (including aspectic, bag in box, cup, direct, piston) 10

 

Processing assets:

Asset Life (years)
Blanchers and paste finishers (including bean, spaghetti) 12
Concentrates and syrup assets (including centrifuges, decanters and syrupers) 15
Cookers: Rotary atmospheric sterilisers 20
Cookers: Rotary pressure sterilisers 10
Cookers: Static retorts 15
Crushing mills 30
Graders 15
Peelers: Chemical (including caustic peelers) 10
Peelers: Mechanical (including ginacas and magnesium scrubbers) 5
Pitters and re-pitters 20
Slicers and re-sizers 15

 

Quality control and inspection assets:

Asset Life (years)
Colour sorters 10
Inspection equipment including checkweighers, metal detectors see Table B Packaging machines

 

Support assets:

Asset Life (years)
Bin tippers 20
Control systems see Table B Control systems and control system assets
Conveyors and elevators 15
Filtration systems 15
Pasteurisers (including heat exchangers) 10
Pumps 10

Jam, pickles and sauce manufacturing assets

Packaging assets:
Asset Life (years)
Carton erectors 12
Labellers see Table B Packaging machines
Palletisers 10
Pallet wrappers and shrink wrappers see Table B Packaging machines

 

Filling and sealing assets:

Asset Life (years)
Bottle rinsing machines 10
Capping machines 15
Denesters 10
Filling machines (including aseptic, bucket, portion control) 15
Jar depalletisers 15
Lid descramblers, cap sorters, hoppers 15

 

Processing assets:

Asset Life (years)
Brush finishers and pulper finishers 15
Cookers 10
Cooling tunnels (including water cooling tunnels) 15
Micro filters 20
Pasteurisers 15
Pectin mixers 10
Pipes and pipelines (pigging) 15
Tanks and vats (including blending, holding and mixing tanks) 15

 

Quality control and inspection assets:

Asset Life (years)
Metal detectors and camera vision scanners 10

 

Support assets:

Asset Life (years)
Accumulation tables and turntables 15
Air compression assets (including air compressors, air dryers and air receivers) 10
Boilers see Table B Boilers
Conveyors 15
Exhaust systems 10
Heat exchangers 10
Pumps (including cavity, diaphragm, lobe) 15

See also TR 2017/2 – Income tax: effective life of depreciating assets