Production assets

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

9 assets listed.

Asset Effective life Prime cost rate Diminishing value rate Applicable from
Autoclaves (for terminal sterilisation) 10 years 10.00% 20.00% 1 July 2025
Encapsulators 10 years 10.00% 20.00% 1 July 2025
Fluid bed dryers 12 years 8.33% 16.67% 1 July 2025
Granulators and mixer/granulators 12 years 8.33% 16.67% 1 July 2025
Homogenisers 7 years 14.29% 28.57% 1 July 2025
Intermediate bulk containers, bins and vessels (including instruments, pipes, pumps and valves) used to hold and transfer formulations during various stages of production 10 years 10.00% 20.00% 1 July 2025
Metal detectors 10 years 10.00% 20.00% 1 July 2025
Sizing mills 10 years 10.00% 20.00% 1 July 2025
Vibrating sieves 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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