Dairy processing

ATO depreciation rates for dairy processing assets in the Manufacturing 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
Cheese cutting machines (including cutters, grinders, shredders and slicers) 15 years 6.67% 13.33% 1 July 2025
Cheese making vats 20 years 5.00% 10.00% 1 July 2025
Cheese washers 15 years 6.67% 13.33% 1 July 2025
Cheese wrapping machines (including overwrappers and thermoforming machines) 12 years 8.33% 16.67% 1 July 2025
Continuous cheese making machines 15 years 6.67% 13.33% 1 July 2025
Cream, liquid and powder filling and sealing machines (including bag, bottle, syringe and tube fillers and sealers) 12 years 8.33% 16.67% 1 July 2025
Culture vats Assets for dairy powder manufacturing: 1 Jul 2017 15 years 6.67% 13.33% 1 July 2025
Ice cream churners/freezers 15 years 6.67% 13.33% 1 July 2025
Milk tankers (incorporating tank and trailer) 15 years 6.67% 13.33% 1 July 2025
Mixers and blenders (including cream, liquid, powder, and syrup mixers and blenders) 10 years 10.00% 20.00% 1 July 2025
Pizza sauce and topping application assets (including can opening machines, cheese shredding assets, depositors, enrobers, topping applicators and water coating sprayers) 15 years 6.67% 13.33% 1 July 2025
Resin beads for milk and protein processing and water filtration 5 years 20.00% 40.00% 1 July 2025
Spiral prover Secondary process assets (including cake folders, 121/2 * 1 Jan 2002 creamers, depositors, enrobers, icing machines, sandwiching machines and sprinklers) 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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