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What's the effective life of Australias data centers
Following a routine review of the assets and equipment listed in its taxation ruling 2016/1 (effective life of depreciating assets), the ATO decided that sustained growth in the local Data center industry over the last few years necessitated its own category.
Data center operators to date have either self-assessed the useful lives of their facilities and equipment for depreciation purposes, or have turned to more general categories under Table B of the TR 2016/1.
Those who choose to self-assess need to be prepared to explain the rationale of their lifespan choice should they be audited by the ATO.
The tax office wants to give data center operators more certainty in their depreciation claims, and so has collated a list of 19 data center assets with suggested lifespans for industry feedback.
Assets listed include aisle containments, chillers, air conditioning units, cooling towers, humidifiers, water tanks, UPS Power System , racks, leak detection systems, raised floors, and rectifiers.
Suggested lifespans - which the ATO came to following consultation with data center operators and equipment manufacturers - range from five years for humidifiers and UPS batteries to 40 years for raised floors.
Should the draft lifespans be made official, data center operators will need use the suggested figures or explain to the ATO how they came to a different number should they be audited.
- 2019-05-27 14:46:54
- admin
ATO proposes specific depreciation lifespans.
The Australian Taxation Office is asking the IT industry to pitch in and help it work out the effective lifespan of Data center and the kit that runs them.
Recently, the ATO quietly published a draft determination for the effective lives of assets used in the Data center industry.
Data center operators to date have either self-assessed the useful lives of their facilities and equipment for depreciation purposes, or have turned to more general categories under Table B of the TR 2016/1.
Those who choose to self-assess need to be prepared to explain the rationale of their lifespan choice should they be audited by the ATO.
The tax office wants to give data center operators more certainty in their depreciation claims, and so has collated a list of 19 data center assets with suggested lifespans for industry feedback.
Assets listed include aisle containments, chillers, air conditioning units, cooling towers, humidifiers, water tanks, UPS Power System , racks, leak detection systems, raised floors, and rectifiers.
Suggested lifespans - which the ATO came to following consultation with data center operators and equipment manufacturers - range from five years for humidifiers and UPS batteries to 40 years for raised floors.
Should the draft lifespans be made official, data center operators will need use the suggested figures or explain to the ATO how they came to a different number should they be audited.
