Air conditioning and HVAC

ATO depreciation rates for air conditioning and hvac assets in the General industry, under Income Tax (Effective Life of Depreciating Assets) Determination 2025 (LI 2025/20).

3 assets listed.

Asset Effective life Prime cost rate Diminishing value rate Applicable from
Cooling towers 15 years 6.67% 13.33% 1 July 2025
Mini split systems up to 20 KW (including ceiling, floor and high wall split systems) 10 years 10.00% 20.00% 1 July 2025
Packaged air conditioning units 15 years 6.67% 13.33% 1 July 2025

About these rates

The effective lives shown above are determined by the Commissioner of Taxation under section 40-100 of the Income Tax Assessment Act 1997. The diminishing value rate equals 200% ÷ effective life (for assets acquired on or after 10 May 2006). The prime cost rate equals 100% ÷ effective life. You may alternatively self-assess effective life — see the ATO website for guidance.

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