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16 Jun 2011

Determination PROV21: Tax Depreciation Rates

Determination PROV21 (2011) sets a provisional depreciation rate for a fleet tracking unit which enables the home base to monitor a vehicle's position.

Fleet tracking unit – Depreciation

The Commissioner has set a provisional depreciation rate for a fleet tracking unit.

Fleet tracking units are hardwired into a vehicle and enable the vehicle's home base to monitor the vehicle's position via mobile phone network, or an internet server. The sophistication of a fleet tracking unit can range from a simple tracking unit that shows the location of a fleet vehicle on a map, to more elaborate custom applications that can provide a dashboard-style view of all fleet vehicles on a map plus information about the condition and use of each vehicle, for example, when the vehicle exceeds the speed limit, when a fault occurs in the vehicle, or when scheduled maintenance is due. Fleet tracking units can also include the ability for fleet managers to send and receive text messages to and from the vehicle.

This provisional depreciation rate determination does not apply to plug-n-play GPS map display units used by drivers for navigation purposes.

Determination PROV21: Tax Depreciation Rates Provisional Determination Number PROV21

This determination may be cited as "Determination PROV21: Tax Depreciation Rates Provisional Determination Number PROV21".

  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.
  1. 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 "Transportation" asset 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
    Fleet tracking unit
  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 on the 16th day of June 2011.

Rob Wells
LTS Manager, Technical Standards