ATO depreciation rates for drilling assets assets in the Mining industry, under Income Tax (Effective Life of Depreciating Assets) Determination 2025 (LI 2025/20).
17 assets listed.
| Asset | Effective life | Prime cost rate | Diminishing value rate | Applicable from |
|---|---|---|---|---|
| Blast hole pumps | 7 years | 14.29% | 28.57% | 1 July 2025 |
| Bottom hole assemblies (including logging while drilling tools, measuring while drilling tools, motors and stabilisers) | 5 years | 20.00% | 40.00% | 1 July 2025 |
| Drill rigs | 10 years | 10.00% | 20.00% | 1 July 2025 |
| Drill rigs (Production) | 10 years | 10.00% | 20.00% | 1 July 2025 |
| Drill strings | 3 years | 33.33% | 66.67% | 1 July 2025 |
| Drilling rigs – shot hole | 10 years | 10.00% | 20.00% | 1 July 2025 |
| Fluid assets (including centrifuges, pumps and shear units) | 10 years | 10.00% | 20.00% | 1 July 2025 |
| Mobile fluid tanks | 10 years | 10.00% | 20.00% | 1 July 2025 |
| Off highway trucks (including articulated, rigid dump, service, fuel and water trucks) | 10 years | 10.00% | 20.00% | 1 July 2025 |
| Offshore drilling rigs (including blow out preventers, drilling fluid circulation systems, hoisting and rotary systems, platforms, rig powering and transmissions) | 20 years | 5.00% | 10.00% | 1 July 2025 |
| Onshore surface drilling rigs (including blow out preventers, derricks, drilling fluid circulation systems, hoisting and rotary systems, rig powering and transmissions) | 15 years | 6.67% | 13.33% | 1 July 2025 |
| Pumping units | 7 years | 14.29% | 28.57% | 1 July 2025 |
| Reel and power units | 10 years | 10.00% | 20.00% | 1 July 2025 |
| Remote control blasting units | 5 years | 20.00% | 40.00% | 1 July 2025 |
| Surface (including blow out preventers, drilling fluid circulation systems, hoisting and rotary systems, rig powering and transmission and trucks) | 10 years | 10.00% | 20.00% | 1 July 2025 |
| Surface drill rigs (production) | 10 years | 10.00% | 20.00% | 1 July 2025 |
| Well control equipment (including blow out preventers and choke manifolds) | 5 years | 20.00% | 40.00% | 1 July 2025 |
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.