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General Determination DEP93: Depreciation Rate for portable fencing (galvanised steel)

Note to Determination DEP93

The Commissioner of Inland Revenue sets general depreciation rates for "Portable fencing (galvanised steel)". New asset classes are added into the “Contractors, builders and quarrying” industry category and “Hire equipment” asset category, as set out below.

Portable fencing that is available for short-term hire (one month or less) will also fall within the asset class of "Contractors, building and quarrying equipment for hire with a general DV rate based on an estimated useful life of 8 years" in the "Hire equipment (short-term hire of one month or less only)" asset category.

Portable fencing is short-term, easily movable fencing consisting of lightweight panels, weighted feet and clamps. It is easy to store, transport, erect and remove.

Portable fencing generally has an estimated useful life of 8 years. However, portable fencing that is hired out to be used by others has an estimated useful life of 5 years.


Determination DEP93: Tax Depreciation Rates General Determination Number 93

1. Application

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

This determination applies from the 2015 and subsequent income years. Taxpayers who have filed their income tax return prior to this determination being issued may request amended assessments pursuant to section 113 of the Tax Administration Act 1994.

2. Determination

Pursuant to section 91AAG 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 "Contractors, builders and quarrying" industry category, a new asset class with the estimated useful life and diminishing value and straight line depreciation rates as listed below:
Asset class Estimated useful life
(years)
DV rate
(%)
SL rate
(%)
Portable fencing (galvanised steel) 8 25 17.5
  • adding into the "Hire equipment" asset category, a new asset class with the estimated useful life and diminishing value and straight line depreciation rates as listed below:
Asset class Estimated useful life
(years)
DV rate
(%)
SL rate
(%)
Portable fencing (galvanised steel) 5 40 30

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 by Rob Wells on the 9th day of July 2015.

Rob Wells
LTS Manager, Technical Standards