Mō ngā whakataunga hekenga wāriu About depreciation determinations

Find out about the 3 different depreciation determinations you can apply for, depending on your circumstances.

Business assets are depreciated at different rates. We set depreciation rates based on the cost and useful life of an asset. To find a general rate, check the industry and asset categories in General depreciation rates – IR265 on our depreciation page.

Depreciation

If the existing general depreciation rates do not match your asset, you can apply for a determination to get a new rate.

Provisional depreciation rate determinations

You can apply for a provisional depreciation rate if you think the existing asset classes (excluding the default class listed under the industry category) do not cover your asset. For example, if you have an asset that is newly invented or imported into New Zealand, and its asset class is not listed under the general asset category.

To apply for a provisional depreciation determination, fill out an Application for a provisional depreciation rate – IR260A and send it to us. The form and our email address are on our Applying for a provisional rate page. 

Applying for a provisional depreciation rate

Special depreciation rate determinations

You can apply for a special depreciation rate if you think our existing depreciation rate is not suitable for your asset. For example, you have a machine you use in an unusually heavy or light manner.

If you are applying for a special depreciation determination rate, you’ll need to provide evidence of how your unique circumstances will affect the life of your asset.

You can apply for a special depreciation rate in myIR.

Applying for a special depreciation rate or higher maximum pooling value

Higher maximum pooling value

The pooling method lets you group low-value assets together and calculate depreciation for the whole group, rather than individually. This reduces compliance costs.

The maximum pooling value is $5,000 — you can only pool assets that individually have an adjusted tax value of $5,000 or less. However, you can apply for a higher maximum pooling value for your low-value assets.

You can apply for a higher maximum pooling value in myIR.

Applying for a special depreciation rate or higher maximum pooling value

More information about depreciation

Depreciation – a guide for business – IR260 is on our depreciation page.

Depreciation

The depreciation rate finder and calculator tool is on our claiming depreciation page.

Claiming depreciation