Campervans and Motorhomes
General Determination DEP99 corrects the depreciation rate for Campervans and Motorhomes for the 2010/11 and subsequent income years.
Note to Determination DEP99
This determination corrects the applicable depreciation rate for Campervans and Motorhomes, for the 2010/11 and subsequent income years. The item also clarifies the Commissioner's view that these assets are:
- considered to have a high residual value (20% residual value)
- assets acquired during or after the 2010/11 income year are viewed as having an estimated useful life of 8 years,
- assets acquired prior to the 2010/11 income year were viewed as having an estimated useful life of 10 years.
Taxpayers impacted by the retrospective depreciation rate change can ask for an adjustment to assessments for past years in terms of section 113 of the Tax Administration Act 19941, to the extent that legislation permits a refund to be made under Subpart RM of the Income Tax Act 2007. Alternatively, other taxpayers may choose to simply begin to use the new depreciation rate prospectively and make the appropriate depreciation recovery adjustment upon disposal of a campervan or motorhome..
Determination DEP99: Tax Depreciation Rates General Determination Number DEP99
1. Application
This determination applies to taxpayers who own items of depreciable property of the kind listed in the table below:
This determination applies to the 2010/11 and subsequent income years.
2. Determination
Pursuant to section 91AAF of the Tax Administration Act 1994 I set in this determination the rate to apply to the kind of items of depreciable property listed in the table below by:
- deleting from the "Leisure" industry category and the "Hire equipment" and "Transportation" asset categories, the asset class, estimated useful life, and general diminishing value and straight-line depreciation rates listed below:
| Asset class | Estimated useful life (years) | DV rate (%) | SL rate (%) |
|---|---|---|---|
| Campervans acquired during or after the 2010/11 income year | 8 | 18 | 12.5 |
| Motorhomes acquired during or after the 2010/11 income year | 8 | 18 | 12.5 |
- deleting from the "Leisure" industry category, the asset class, estimated useful life, and general diminishing value and straight-line depreciation rates listed below:
| Asset class | Estimated useful life (years) | DV rate (%) | SL rate (%) |
|---|---|---|---|
| Campervans (including Motorhomes) acquired before 1 April 2005 | 10 | 18 | 12.5 |
| Campervans (including Motorhomes) acquired on or after 1 April 2005 but prior to the 2010/11 income year | 10 | 20 | 13.5 |
- adding into the "Hire equipment" and "Transportation" asset categories, the new asset class, estimated useful life, and general diminishing value and straight-line depreciation rates listed below:
| Asset class | Estimated useful life (years) | DV rate (%) | SL rate (%) |
|---|---|---|---|
| Campervans acquired between 1 April 2005 and prior to the 2010/11 income year | 10 | 20 | 13.5 |
| Campervans acquired during or after the 2010/11 income year (residual value estimated at 20%) | 8 | 20 | 13.5 |
| Motorhomes acquired between 1 April 2005 and prior to the 2010/11 income year | 10 | 20 | 13.5 |
| Motorhomes acquired during or after the 2010/11 income year (residual value estimated at 20%) | 8 | 20 | 13.5 |
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 on the 1st day of June 2017.
Rob Wells
LTS Manager, Technical Standards
Footnote
[1] More information regarding section 113 can be found in Standard Practice Statement SPS 16/01: Requests to amend assessments.