Australia Publishes Draft Tax Ruling on Depreciation of Composite Assets

The Australian Taxation Office (ATO) has published draft taxation ruling TR 2017/D1 on the depreciation of composite assets, which are assets made up of a number of components that are capable of separate existence. The draft ruling sets out the Commissioner's views on:

• How to determine whether a composite item is itself a depreciating asset or whether its components are separate depreciating assets for the purposes of Division 40 (capital allowances), and
• Whether an 'interest in an underlyi…