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Technical tax area Ngā tūmomo whakataunga me ngā aratohu

Determination DEP 82: General depreciation rate for meal feeder - automated

Note to Determination DEP 82

The Commissioner has set a general depreciation rate for "meal feeders, automated" by adding a new asset class in the "Agriculture, Horticulture and Aquaculture" industry category.

The Commissioner considers that the new asset class has an estimated useful life of 20 years.

What is the asset?

Automated meal feeders are used by primary producers (farmers) to deliver supplementary dry and liquid feed to stock. For example, to cows while they are being milked. Automated meal feeder systems may also be used in other farming activities such as poultry or fish farming.

Although there may be variations to the overall design to meet the customised requirements of each user, an automated meal feeder system generally consists of:

  • Meal feed pan
  • Galvanised steel silo to hold the feed until dispensing
  • Polyethylene tank to hold the liquid feed until dispensing
  • Galvanised steel silo which gives the ability to mix the feed being dispensed
  • Associated PVC pipework
  • An internal auger to move the dry feed and alkathene pipe which delivers the liquid feed, from the respective storage facilities
  • Pump which moves the liquid feed to the stainless feed pan
  • Motor or vibratory feeder, and
  • Control system.

General Depreciation Determination DEP 82

1. Application

This determination applies to taxpayers who own depreciable property of the kind listed in the table below.

This determination applies from the 2012 and subsequent income years.

2. Determination

Pursuant to section 91AAF of the Tax Administration Act 1994 the general determination will apply to the kind of items of depreciable property listed in the table below by:

  • Adding into the "Agriculture, horticulture and aquaculture" industry category a new asset class, estimated useful life, and general diminishing value and straight line depreciation rates as listed below:
Agriculture, horticulture and aquaculture Estimated
useful life
(years)
DV rate
(%)
SL rate
(%)
Meal feeders, automated 20 10 7

3. 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 18th day of October 2012.

Rob Wells
LTS Manager, Technical Standards