The Government today reaffirmed its commitment to provide certainty for the transport industry by introducing effective life caps for the depreciation of trucks, truck trailers, buses and light commercial vehicles.
Minister for Revenue and Assistant Treasurer, Mal Brough, and Deputy Prime Minister and Minister for Transport and Regional Services, John Anderson, announced the Government's intention to set effective life caps for the transport industry in August. The caps will apply to the 'safe harbour' effective lives determined by the Commissioner of Taxation which were announced today.
The Commissioner's review, as recommended by the Review of Business Tax, is important to ensure the effective life schedule is modernised and updated to reflect current business practices.
"The statutory effective life caps will apply to purchases made on or after 1 January 2005 to coincide with the Commissioner's determination," Mr Brough said today.
The statutory effective life caps will be as follows:
- 7.5 years for general and heavy haulage trucks
- 7.5 years for general, intercity and long distance buses
- 10 years for truck trailers
- 7.5 years for light commercial vehicles (including minibuses)
"These measures strike an important balance between meeting industry needs, supporting the interests of the broader Australian community and maintaining the integrity of the effective life depreciation system.
"It enables transport operators to maintain a younger, safer fleet, and assists this vital industry to manage the nation's growing freight task," Mr Brough said.
Amendments to give effect to the Government's effective life caps will be introduced into Parliament as soon as possible.
Information on effective lives can be found at www.ato.gov.au.