Tables of expected life span are published by the Australian Government Actuary (AGA) and used by the Department of Social Security in the assessment of income streams, based on the time of commencement of income stream payments. The tables are updated every 5 years. Payments commenced on or after 1 January 2020.


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Ato truck effective life

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Ato truck effective life

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Ato truck effective life

The effective life of John's truck as determined by the Commissioner is 15 years. As the capped effective life of the truck of 7.5 years (row 5 of the table) is shorter than the Commissioner's effective life, John must use the capped effective life. The effective life is used to work out the asset’s decline in value (or depreciation) for which an income tax deduction can be claimed. For most depreciating assets, you can use the ATO's determinations of effective life, published in taxation rulings (updated annually).

Capped effective lives are shorter than the effective life determined by the Commissioner’s normal determination process, and must be used when the Commissioner’s effective life method is selected. This however does not remove the option to self-assess effective life as an alternative. How to check or find capped effective life assets A business vehicle’s effective life. General depreciation rules require a determination of the effective life of a vehicle in order to calculate either prime cost or diminishing value methods. To work this out, you can use one of the following: ATO determination: A standardised rate set by the ATO and published annually in taxation rulings.
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How to check or find capped effective life assets A business vehicle’s effective life.
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Capital allowances: completed effective life reviews. The schedule of effective life determinations has been progressively updated since 1 January 2001. The following is a list of effective life reviews that have been completed, including the date of effect of the new effective lives.

Download the BMT Rate Finder app today and search depreciation rates on the go. With more than 1,500 plant and equipment items identified as depreciable assets by the Australian Tax Office (ATO), our app helps to take the guesswork out of calculating the effective life of depreciating assets.

• Heavy haulage trucks: 7.5 years (26.7% DV) • Buses with a gross vehicle mass of more than 3.5 tonnes: 7.5 years (26.7% DV) • Minibuses with a gross vehicle mass of 3.5 tonnes or less and designed to carry 9 or more passengers: 7.5 years (26.7% DV) • Light commercial vehicles: 7.5 years (26.7% DV) • Truck trailers: 10 years (20% DV).

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