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27 Feb 2012

Determination PROV23: Provisional depreciation rate for automated milking system

Determination PROV23 (2012) sets a provisional depreciation rate for automated milking systems, or milking machines.

The Commissioner has set a provisional depreciation rate for automated milking systems.

An automated milking system is a robotic milking machine that is used on dairy farms. It enables cows to be milked on demand, without human intervention. An automated milking system typically consists of the following components and functions:

  • The milking station, which includes robotic arms, cups that place on a cow’s udder, gates, and frame where the cow stands during milking
  • Feeding systems for the cow while milking
  • Udder preparation routine
  • Cleaning system
  • A milking machine and milking line
  • Vacuum system
  • Milk cooling function
  • Automatic milk samplers
  • Milk quality monitoring equipment
  • Cow electronic identification
  • Selection gates and herd traffic control software
  • Herd management software, including software to control the milking, cleaning and cooling process; milk quality monitoring; and cow identification

Determination PROV23: Tax Depreciation Rates Provisional Determination PROV23

This determination may be cited as "Determination PROV23: Tax Depreciation Rates Provisional Determination Number PROV23".

1. Application

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

This determination applies for the 2011 and subsequent income years.

2. Determination

Pursuant to section 91AAG of the Tax Administration Act 1994 I set in this determination the provisional rate 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 provisional asset class, estimated useful life, and diminishing value and straight-line depreciation rate listed below:
Provisional asset class Estimated
useful life
DV rate
SL rate
Automated milking system 10 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 27th day of February 2012.

Rob Wells
LTS Manager, Technical Standards