GOING DOWN: TOURISM operators will benefit from an Australian Taxation Office ruling on asset depreciation timeframes.
The new rule shortens the lives, in terms of depreciation, of many hospitality and accommodation assets including items such as furniture, televisions, carpets and microwaves.
Depreciation on a microwave oven, for instance, previously determined over a 10year period will now be determined over a fiveyear period. The relevant differences for bar fridges, water pumps and signage used for promotional use is down from 20 years to 10, and beds and mattresses down from 13 years and 4 months to seven years.
Hailing the ruling “a win for the tourism industry” Federal Tourism Minister and McEwen MP Fran Bailey said the new rule was a step in the right direction for tourism operators.
“The new life span means our accommodation and hospitality industry can continue to offer tourists firstclass standards,” she said.
“Australia’s tourism industry is operating in a globally competitive environment and will continue to differentiate itself by offering tourists high quality products.”
Details of the new determinations are available on the ATO website at www.ato.gov.au.
