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Technical tax area Ngā tūmomo whakataunga me ngā aratohu

Provisional Depreciation Determination PROV 25: Stabilised Turf Systems

Note to Determination PROV 25

The Commissioner has set provisional depreciation rates for stabilised turf systems by adding new asset classes to the "Leisure" industry category.

Stabilised turf systems comprise the playing surfaces of some sports stadiums.  The turf systems are made up of the playing surface, infill, base, drainage, and watering system.  The turf systems vary in that one involves synthetic grass and the other synthetic tufts and plastic mesh through which natural grass grows.  Ground preparation work, other than trenches cut to facilitate the installation of drainage pipes, is not depreciable as it relates to the land. 

As the determination shows, the stabilised turf system consists of a number of components that have different useful lives.

Provisional Depreciation Determination PROV 25

1. Application

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

This determination applies from the 2011/12 and subsequent income years.

2. Determination

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

  • Adding into the "Leisure" industry category new asset classes, estimated useful lives, and provisional diminishing value and straight line depreciation rates as listed below:
Asset class Estimated
useful life
DV rate
SL rate
Synthetic Grass, infill and shock attenuation pads 10 20 13.5
Stabilised Turf System Matrix and infill 10 20 13.5
Base Sand, Gravel and Drainage (including drainage trenches but not including land contouring) 20 10 7.5
Watering System 20 10 7.5

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 me on the 5th day of June 2013.




Rob Wells
LTS Manager, Technical Standards