Useful lives that match how the factory actually runs

Generic useful-life tables are a starting point, not a verdict. When a plant moves from continuous production to day shifts only, wear slows. When a new contract adds weekend runs, wear accelerates. Depreciation schedules that ignore usage drift become hard to defend to an accountant or a buyer.

Australian manufacturing SMEs often inherit lives set by a previous bookkeeper or an ERP template. Reviewing lives does not mean rewriting every asset — it means focusing on material classes: primary production plant, specialised tooling, and major fit-out.

Document the reason for each change. Residual values, rebuild history, and manufacturer guidance all help. The goal is a schedule that matches operations closely enough that next year’s rollforward does not surprise anyone.