Oil and gas extraction

ATO depreciation rates for oil and gas extraction assets in the Mining industry, under Income Tax (Effective Life of Depreciating Assets) Determination 2025 (LI 2025/20).

16 assets listed.

Asset Effective life Prime cost rate Diminishing value rate Applicable from
Boilers 10 years 10.00% 20.00% 1 July 2025
Boilers Circulation pumps 121/2 * 1 Jul 2002 10 years 10.00% 20.00% 1 July 2025
Domestic gas processing assets (including centrifugal compressor, column, gas turbine, heat exchanger, piping and turbo expander) 30 years 3.33% 6.67% 1 July 2025
Flare towers for gas flares 25 years 4.00% 8.00% 1 July 2025
Fuel gas systems 30 years 3.33% 6.67% 1 July 2025
Gas cleaning process assets (including electrostatic precipitators and baghouses) 20 years 5.00% 10.00% 1 July 2025
Gas compressors used offshore Gas turbine drivers used offshore 121/2 * 1 Jul 2002 10 years 10.00% 20.00% 1 July 2025
Gas recovery process assets (including stripping and absorption assets) 25 years 4.00% 8.00% 1 July 2025
Gas storage tanks 25 years 4.00% 8.00% 1 July 2025
Gas storage tanks and spheres 25 years 4.00% 8.00% 1 July 2025
Infield gathering systems used for gas and associated water (including polyethylene (PE) pipes and pumps) 20 years 5.00% 10.00% 1 July 2025
Infield pipeline Instruments (including level, pressure and 121/2 * 1 Jul 2002 temperature indicators) 30 years 3.33% 6.67% 1 July 2025
Infield pipelines Instruments (including level, pressure and 121/2 * 1 Jul 2002 temperature indicators) 15 years 6.67% 13.33% 1 July 2025
LNG holding facility assets (including boil off gas compressors, cryogenic storage tanks, loading arms, pumps and tanks) 30 years 3.33% 6.67% 1 July 2025
LNG train assets (including centrifugal compressors, columns, cryogenic heat exchangers, gas turbine drivers and other heat exchangers) 30 years 3.33% 6.67% 1 July 2025
Shutdown and fire/gas systems 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.

Open interactive version on ausrates.net →