Child restraints (capsules and car seats) for hire

In Tax Information Bulletin, Volume 19, No. 4 (May 2007) on page 4, we advised that a draft general depreciation determination proposing the setting of a general depreciation rate for "Rental car seats" was available for comment. The one submission we received on the draft agreed with the rates we proposed.

The Commissioner has now issued the determination. It is reproduced below and may be cited as "Determination DEP61: Tax Depreciation Rates Determination General Determination No. 61". The determination inserts a new asset class "Child restraints (capsules and car seats) for hire" into the "Transportation" asset category. It is based on an estimated useful life (EUL) for the assets of 5 years.

This determination may be cited as "Determination DEP61: Tax Depreciation Rates General Determination Number 61"

1. Application
   
   This determination applies to taxpayers who own assets in the "Transportation" asset category that are in the asset classes set out below.
   
   This determination applies to "depreciable property" other than "excluded depreciable property" for the 2005-06 and subsequent income years.
   
   
2. Determination
   
   Pursuant to section 91AAG(4) of the Tax Administration Act 1994 I hereby amend Determination DEP1: Tax Depreciation Rates General Determination Number 1 (as previously amended) by inserting into the "Transportation" asset category, the general asset class, estimated useful life, and diminishing value and straight-line depreciation rates listed below. Columns 3 and 4 apply to items purchased prior to 1 April 2005. Columns 5 and 6 apply to items purchased on or after 1 April 2005:
   
   

   1	2	3	4	5	6
   General asset class	Estimated useful life (years)	DV banded dep'n rate before 1/4/05 (%)	SL equiv banded dep'n rate before 1/4/05 (%)	DV banded dep'n rate from 1/4/05 (%)	SL equiv banded dep'n rate from 1/4/05 (%)
   Child restraints (capsules and car seats) for hire	5	33	24	40	30

   
   
3. Interpretation
   
   In this determination, unless the context otherwise requires, expressions have the same meaning as in the Income Tax Act 2004 and the Tax Administration Act 1994.

This determination is signed by me on the 19th day of June 2007.

Susan Price
(Senior Tax Counsel)