Bench-top Pizza Ovens and Microwave Ovens (Commercial)

Note to Determination DEP 89

The Commissioner has set general depreciation rates for bench-top pizza ovens and microwave ovens (commercial) by adding new asset classes to the "Hotels, motels, restaurants, cafes, taverns and takeaway bars" and "Shops" industry categories.

As loaned or hired assets tend to be handled and transported frequently and are not as well maintained as owned assets, a further asset class is provided for "pizza ovens (bench-top, for long-term loan or hire)", with a lesser estimated useful life. Note: Long-term loan or hire applies to a period greater than one month.

Commercial microwave ovens are very common in commercial kitchens and also in shops. These ovens are usually of a similar size to domestic microwave ovens but are constructed of better quality materials, and are not as large or long lasting as industrial microwave ovens used in food processing factories. A new asset class of "microwave ovens (commercial)" has been provided.

1. Application

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

This determination applies from the 2014 and subsequent income years.

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 "Hotels, motels, restaurants, cafes, taverns and takeaway bars" and "Shops" industry categories, new asset classes, estimated useful lives, and diminishing value and straight line depreciation rates as listed below:

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 August 2014.

Rob Wells
LTS Manager, Technical Standards