While the proposed effective lives will apply to residential property acquired after 1 July 2004, items being depreciated, that the ATO consider no longer qualify as plant will be strictly audited with the usual penalties to those choosing to ignore ATO advice.

Items included on the ATO hit list are items such as light fittings, hot water points, vanity units, mirrors, laundry tub units, towel rails etc and will all be scrutinised under an audit