Compressed air assets

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

13 assets listed.

Asset Effective life Prime cost rate Diminishing value rate Applicable from
Air driers and dehumidifiers 10 years 10.00% 20.00% 1 July 2025
Air receivers 10 years 10.00% 20.00% 1 July 2025
Aluminium 15 years 6.67% 13.33% 1 July 2025
Continuous diesel engine particulate testers 5 years 20.00% 40.00% 1 July 2025
Cooling system flushers 5 years 20.00% 40.00% 1 July 2025
Copper 20 years 5.00% 10.00% 1 July 2025
Decelerometer brake testers 7 years 14.29% 28.57% 1 July 2025
Hose reels 3 years 33.33% 66.67% 1 July 2025
Polyethylene (PE) 15 years 6.67% 13.33% 1 July 2025
Reciprocating 10 years 10.00% 20.00% 1 July 2025
Rotary screw 10 years 10.00% 20.00% 1 July 2025
Rotary vane 10 years 10.00% 20.00% 1 July 2025
Steel 10 years 10.00% 20.00% 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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