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Determination DEP76: Tax Depreciation Rates General Determination Number 76


Note to determination DEP76:

This determination applies to the 2010/11 income year and subsequent income years and is issued pursuant to section 91AAF of the Tax Administration Act 1994.

This determination introduces Motorhomes as a new asset class description.  The Commissioner considers that Motorhomes have previously been included within the Campervan asset class description. Motorhomes acquired before 2010/11 income year should continue to be depreciated using the appropriate depreciation rate for Campervans.

For Campervans and Motorhomes that are exclusively available for hire for periods longer than 1 month, the rates in section EE 29 of the Income Tax Act 2007 apply (30% D.V. or 21% S.L.).

For Campervans and Motorhomes that are not available exclusively for hire for periods longer than 1 month, there are three different depreciation rates that may apply depending on when the campervan or motorhome was acquired. The different rates apply to the following:

  • Campervans and Motorhomes acquired in the 2010/11 and later income year;
  • Campervans and Motorhomes acquired after 1 April 2005, but prior to the 2010/11 income year; and
  • Campervans and Motorhomes acquired prior to 1 April 2005

For Campervans and Motorhomes acquired in the 2010/11 and later income years, the depreciation rates are set under section EE 30 of the Income Tax Act 2007 (Economic rate for plant, equipment, or building, with high residual value). These are new depreciation rates.

For Campervans and Motorhomes acquired prior to the 2010/11 income year, the depreciation rates are set under sections EZ 23 and EE 27 respectively.  These rates remain unchanged. The asset class descriptions have been updated to take into account the new depreciation rates and to make it clear the Campervan asset class included Motorhomes.


Determination DEP76: Tax Depreciation Rates General Determination Number 76

This determination may be cited as "Determination DEP 76: Tax Depreciation Rates Determination Number 76".

  1. Application
    This determination applies to taxpayers who own items of depreciable property of the kind listed in the table below that have been acquired during the 2010/11 and later income years.
  2. Determination
    Pursuant to section 91AAF of the Tax Administration Act 1994 I set in this determination the economic rates to apply to the kind of items of depreciable property listed in the table below by:
    • Adding into the "Leisure" industry category and the "Hire Equipment" and "Transportation" asset categories the general asset classes, estimated useful lives, and diminishing value and straight-line depreciation rates listed in the table below:

      General asset class Estimated useful life (years) DV rate (%) SL rate (%)

      Campervans* acquired during or after the 2010/11 income year

      8

      18

      12.5

      Motorhomes* acquired during or after the 2010/11 income year

      8

      18

      12.5


      * Under section EE 30 (Economic rate for plant, equipment, or building, with high residual value) residual value estimated at 20%.
  3. Consequential changes
    As a consequence of this determination, the existing general asset classes for "Campervans" in the "Leisure" industry category and the "Transportation" asset category are amended as follows:

    General asset class Estimated useful life (years) DV rate (%) SL rate (%)

    Campervans (including Motorhomes) acquired before 1 April 2005

    10

    18

    12.5

    Campervans (including Motorhomes) acquired on or after 1 April 2005 but prior to the 2010/11 income year

    10

    20

    13.5


    The above change does not represent a change of depreciation rates. The only change is that the asset class description has been clarified.
  4. Interpretation
    In this determination, unless the context otherwise requires, words and terms have the same meaning as in the Income Tax Act 2007 and the Tax Administration Act 1994.

This determination is signed on the 23rd day of December 2010.

Rob Wells
LTS Manager, Technical Standards