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31 Mar 2010

Tax Depreciation Rates General Determination Number 74

Determination DEP74 sets a general economic depreciation rate for automated dairy drafting systems including gates, hardware and software and installation costs.

Automated dairy drafting systems - Depreciation

The Commissioner has set a general economic depreciation rate for automated dairy drafting systems. These systems consist of a series of computer controlled drafting gates, opened or closed by hydraulic or vacuum powered rams. Its components include gates, rams, computer hardware and software, cabling and installation costs.

Expense items

The systems work by attaching programmable ear tags to the cows. The tag is read by an electronic sensor as the animal approaches the drafting gate so that the animal can be directed left or right for treatment, or allowed to go straight down the race and be returned to the paddock. The electronic ear tags are single use and are not recovered from the animal before it is culled. The Commissioner considers the ear tags to be consumable aids and should be expensed.

This determination may be cited as "Determination DEP 74: Tax Depreciation Rates General Determination Number 74".

  1. Application
  • This determination applies to taxpayers who own items of depreciable property of the kind listed in the table below that have been acquired during the 2009/2010 and subsequent income years.
  1. Determination
  • Pursuant to section 91AAF of the Tax Administration Act 1994 I set in this determination, the economic rates to apply to the kind of items of depreciable property listed in the table below by:

    • Adding into the "Agriculture, Horticulture and Aquaculture" industry category the asset class, estimated useful life and diminishing values and straight-line rates listed below:

    • Asset class Estimated useful life (years) DV rate (%) SL rate (%)
      Automated dairy drafting systems 6.6 30 21
  1. 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 31st day of March 2010.

Rob Wells
LTS Manager, Technical Standards