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General depreciation determinations DEP55 to DEP59

In Tax Information Bulletin Volume 18, No 7 (August 2006) on page 4 we advised of the availability of draft general depreciation determinations proposing the setting of general depreciation rates for the following items:

DDG0110: "Psychological testing sets" used in the medical industry
DDG0111: "Metal speed humps"
DDG0113: "Wintering pads (rubber)" used in the agriculture industry
DDG0114: "Kiwiplus – Kiwifruit Software Package – designed for a specific year"
DDG0115: "Peurulus (baby crayfish) traps" used in the fishing industry

We received no substantive submissions on these drafts.

We have now made the general depreciation determinations and they are reproduced below. The determinations include the rates applying to assets:

  • purchased before 1 April 2005, and
  • purchased on or after 1 April 2005.

The differing rates result from the enactment of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006.

Determination DEP55:

Tax Depreciation Rates General Determination Number 55

  1. Application
    Pursuant to section 91AAG(6) of the Tax Administration Act 1994 this determination replaces Determination PROV2: Tax Depreciation Rates Provisional Determination Number 2 issued on 27 January 1995.

    This determination applies to taxpayers who own assets in the class listed below.

    This determination applies to "depreciable property" other than "excluded depreciable property" for the 2005/2006 and subsequent income years.
  2. Determination
    Pursuant to section 91AAF of the Tax Administration Act 1994 I hereby amend Determination DEP1: Tax Depreciation Rates General Determination Number 1 (as previously amended) by inserting into the "Medical and Medical Laboratory" industry category, in the appropriate alphabetical order, the general asset class, estimated useful life, diminishing value depreciation rate and straight-line depreciation rate listed below. Columns 3 and 4 apply to items purchased prior to 1 April 2005. Columns 5 and 6 apply to items purchased on or after 1 April 2005:

    1 2 3 4 5 6
    General asset class
    Estimated useful life (years)
    DV banded dep'n rate before 1/4/05 (%)
    SL equiv banded dep'n rate before 1/4/05 (%)
    DV banded dep'n rate from 1/4/05 (%)
    SL equiv banded dep'n rate from 1/4/05 (%)
    Psychological testing sets
    10
    18
    12.5
    20
    13.5
  3. Interpretation
    In this determination, unless the context otherwise requires, expressions have the same meaning as in the Income Tax Act 2004 and the Tax Administration Act 1994.

    This determination is signed by me on the 27th day of September 2006

Susan Price
Senior Tax Counsel

Determination DEP56:

Tax Depreciation Rates General Determination Number 56

  1. Application
    Pursuant to section 91AAG(6) of the Tax Administration Act 1994 this determination replaces Determination PROV3: Tax Depreciation Rates Provisional Determination Number 3 issued on 2 May 1995.

    This determination applies to taxpayers who own assets in the classes listed below.

    This determination applies to "depreciable property" other than "excluded depreciable property" for the 2005/2006 and subsequent income years.
  2. Determination
    Pursuant to section 91AAF of the Tax Administration Act 1994 I hereby amend Determination DEP1: Tax Depreciation Rates General Determination Number 1 (as previously amended) by inserting into the "Building Fit-out" and "Transportation" asset categories, in the appropriate alphabetical order, the general asset class, estimated useful life, diminishing value depreciation rates and straight-line depreciation rates listed below. Columns 3 and 4 apply to items purchased prior to 1 April 2005. Columns 5 and 6 apply to items purchased on or after 1 April 2005:

    1 2 3 4 5 6
    General asset class
    Estimated useful life (years)
    DV banded dep'n rate before 1/4/05 (%)
    SL equiv banded dep'n rate before 1/4/05 (%)
    DV banded dep'n rate from 1/4/05 (%)
    SL equiv banded dep'n rate from 1/4/05 (%)
    Metal speed humps
    5
    33
    24
    40
    30
  3. Interpretation
    In this determination, unless the context otherwise requires, expressions have the same meaning as in the Income Tax Act 2004 and the Tax Administration Act 1994.

    This determination is signed by me on the 27th day of September 2006.

Susan Price
Senior Tax Counsel

Determination DEP57:

Tax Depreciation Rates General Determination Number 57

  1. Application
    Pursuant to section 91AAG(6) of the Tax Administration Act 1994 this determination replaces Determination PROV5: Tax Depreciation Rates Provisional Determination Number 5 issued on 23 July 1996.

    This determination applies to taxpayers who own assets in the class listed below.

    This determination applies to "depreciable property" other than "excluded depreciable property" for the 2005/2006 and subsequent income years.
  2. Determination
    Pursuant to section 91AAF of the Tax Administration Act 1994 I hereby amend Determination DEP1: Tax Depreciation Rates General Determination Number 1 (as previously amended) by inserting into the "Agriculture, Horticulture and Aquaculture" industry category, in the appropriate alphabetical order, the general asset class, estimated useful life, diminishing value depreciation rates and straight-line depreciation rates listed below. Columns 3 and 4 apply to items purchased prior to 1 April 2005. Columns 5 and 6 apply to items purchased on or after 1 April 2005:

    1 2 3 4 5 6
    General asset class
    Estimated useful life (years)
    DV banded dep'n rate before 1/4/05 (%)
    SL equiv banded dep'n rate before 1/4/05 (%)
    DV banded dep'n rate from 1/4/05 (%)
    SL equiv banded dep'n rate from 1/4/05 (%)
    Wintering pads (rubber)
    6.66
    26
    18
    30
    21
  3. Interpretation
    In this determination, unless the context otherwise requires, expressions have the same meaning as in the Income Tax Act 2004 and the Tax Administration Act 1994.

    This determination is signed by me on the 27th day of September 2006.

Susan Price
Senior Tax Counsel

Determination DEP58:

Tax Depreciation Rates General Determination Number 58

  1. Application
    Pursuant to section 91AAG(6) of the Tax Administration Act 1994 this determination replaces Determination PROV6: Tax Depreciation Rates Provisional Determination Number 6 issued on 9 June 1997.

    This determination applies to taxpayers who own assets in the class listed below.

    This determination applies to "depreciable property" other than "excluded depreciable property" for the 2005/2006 and subsequent income years.
  2. Determination
    Pursuant to section 91AAF of the Tax Administration Act 1994 I hereby amend Determination DEP1: Tax Depreciation Rates General Determination Number 1 (as previously amended) by inserting into the "Software" asset category, in the appropriate alphabetical order, the general asset class, estimated useful life, diminishing value depreciation rate and straight-line depreciation rate listed below. Columns 3 and 4 apply to items purchased prior to 1 April 2005. Columns 5 and 6 apply to items purchased on or after 1 April 2005:

    1 2 3 4 5 6
    General asset class
    Estimated useful life (years)
    DV banded dep'n rate before 1/4/05 (%)
    SL equiv banded dep'n rate before 1/4/05 (%)
    DV banded dep'n rate from 1/4/05 (%)
    SL equiv banded dep'n rate from 1/4/05 (%)
    Kiwiplus – Kiwifruit Software Package – designed for a specific year
    1
    100
    100
    100
    100
  3. Interpretation
    In this determination, unless the context otherwise requires, expressions have the same meaning as in the Income Tax Act 2004 and the Tax Administration Act 1994.

    This determination is signed by me on the 27th day of September 2006.

Susan Price
Senior Tax Counsel

Determination DEP59:

Tax Depreciation Rates General Determination Number 59

  1. Application
    Pursuant to section 91AAG(6) of the Tax Administration Act 1994 this determination replaces Determination PROV7: Tax Depreciation Rates Provisional Determination Number 7 issued on 23 June 1998.

    This determination applies to taxpayers who own assets in the class listed below.

    This determination applies to "depreciable property" other than "excluded depreciable property" for the 2005/2006 and subsequent income years.
  2. Determination
    Pursuant to section 91AAF of the Tax Administration Act 1994 I hereby amend Determination DEP1: Tax Depreciation Rates General Determination Number 1 (as previously amended) by inserting into the "Fishing" industry category, in the appropriate alphabetical order, the general asset class, estimated useful life, diminishing value depreciation rate and straight-line depreciation rate listed below. Columns 3 and 4 apply to items purchased prior to 1 April 2005. Columns 5 and 6 apply to items purchased on or after 1 April 2005:

    1 2 3 4 5 6
    General asset class
    Estimated useful life (years)
    DV banded dep'n rate before 1/4/05 (%)
    SL equiv banded dep'n rate before 1/4/05 (%)
    DV banded dep'n rate from 1/4/05 (%)
    SL equiv banded dep'n rate from 1/4/05 (%)
    Peurulus (baby crayfish) traps
    1
    100
    100
    100
    100
  3. Interpretation
    In this determination, unless the context otherwise requires, expressions have the same meaning as in the Income Tax Act 2004 and the Tax Administration Act 1994.

    This determination is signed by me on the 27th day of September 2006.

Susan Price
Senior Tax Counsel