Professional photographers know that they claim the cost of any professional equipment over a period of years using an Australian Tax Office (ATO) approved ‘depreciation schedule’. But since when does a camera last 10-12 years?
Source: Abc.net.au
For quite some time, the AIPP had been telling the ATO that the rules relating to depreciation of photographic assets was way off. It took a few nudges before the ATO responded, but earlier this year it pencilled in to review the life of photographic assets.
After the ATO met with an AIPP Special Interest Group (SIG) in Brisbane a few months ago to learn about how pros operate in 2014, the ATO returned with a brand new, revised draft of the life expectancy of photographic assets – finally removing outdated gear like quarter plate cameras from the equation. (See the draft of the new schedule at the bottom of this article.)
‘We spent an enormous amount of time in F5 Studio is Brisbane, showing them the current equipment we use, and how it is used,’ Eric Victor, a photographer and volunteer for the AIPP SIG told Pro Counter. ‘We explained to them its purpose and its exposure to damage and wear and tear.’
‘We packed gear in front of them, unpacked it, repacked it. We showed them that this goes in an aeroplane and this in a back of the year – that sort of stuff.’
Eric and fellow group members also explained how the industry has evolved. No longer is it ‘sedentary’, with a majority of clients visiting studios to have themselves, subjects, objects or whatever photographed.
‘The industry is changing, it’s becoming a lot more flexible and a lot more mobile. And the gear has adapted to that and of course the age of it is changing,’ he said
Not to mention the relentless demands to update equipment and technology.
Changes include reducing the life of a camera to three years (medium format to four) from the previously stated 10-12 years.
The SIG comprised of six photographers from a variety of age groups and expertise to accurately reflect the industry and offer a multitude of perspectives. While Eric recognises that meeting with the ATO can be both tedious and intimidating, he said that the three ATO representatives, headed by Susan Li were ‘very receptive’.
‘They had no idea what photography entailed, apart from taking a few snaps on their own cameras. That was very constructive and they were very grateful that we spent the time,’ he said.
‘There’s a couple of issues regarding camera bags which may have a life which is too long. I know where that came from because we showed them some Pelican aluminium cases which are very expensive and you can get 10 years out of, whereas most others wouldn’t.
Overall, the new draft is a far better representation of the life of photographic assets than previously, and the draft was submitted on July 1 to the ATO in Canberra, awaiting a ‘reassessment’. It is unclear how long this will take, but it is unlikely that any further changes will occur.
‘You’ve just got to be patient, it’s like changing laws,’ Eric said.
To those that are curious, a laptop or PC does not count as photographic equipment.