Rail assets

ATO depreciation rates for rail assets assets in the Transport, Postal And Warehousing 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
Aluminium, galvanised steel, galvanised hot dipped steel and powder coated trailers 10 years 10.00% 20.00% 1 July 2025
Collector rails 30 years 3.33% 6.67% 1 July 2025
Concrete rail beams and rails 30 years 3.33% 6.67% 1 July 2025
Containers, transportable (used to transport goods by road, rail and sea) 10 years 10.00% 20.00% 1 July 2025
Electric/diesel power cars and trailers 30 years 3.33% 6.67% 1 July 2025
Generally (including ballast wagons/cleaners/regulators, rail grinders, sleeper laying machines and track recorders) 20 years 5.00% 10.00% 1 July 2025
Link trainers 8 years 12.50% 25.00% 1 July 2025
Locomotive hauled carriages (including baggage vans, diners, mail vans, sit-up cars, and sleepers) 30 years 3.33% 6.67% 1 July 2025
Mild steel trailers (painted and unpainted) 5 years 20.00% 40.00% 1 July 2025
Rail mounted gantries 15 years 6.67% 13.33% 1 July 2025
Signalling assets (including axle detectors, block signals, dragging equipment detector, hot boxes, interlockings, level crossings, and train control and train describer) Trackwork (incorporating rails, sleepers, ballast, permanent way/top 600, and integral bridges, 15 years 6.67% 13.33% 1 July 2025
Slipways (incorporating rails, ramps, runners and winching systems) 30 years 3.33% 6.67% 1 July 2025
Trailers 8 years 12.50% 25.00% 1 July 2025
Trailers having a gross vehicle mass greater than 4.5 tonnes Trailers having a gross vehicle mass of 4.5 tonnes 15 years 6.67% 13.33% 1 July 2025
Truck and rail receival dump pit 50 years 2.00% 4.00% 1 July 2025
Wagons – non bulk freight (including all wagons used for general and inter-modal freight) 30 years 3.33% 6.67% 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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