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EE 31: Annual rate for item acquired in person’s 1995–96 or later income year
or “Annual rates for calculating depreciation on items acquired since 1995”
You could also call this:

“Choose how to calculate depreciation for certain items bought from April 2005 to early 2006”

If you got something that can wear out or break (but not a building) between 1 April 2005 and the start of your 2006-2007 tax year, you have a choice to make. You can decide how to work out how much it loses value each year. This is called depreciation.

You can choose to use a special rate to figure out the depreciation. This rate is found in section EZ 23. It’s called an economic rate.

If you want to use this special rate, you need to say so in your tax return for the 2005-2006 tax year. This choice will affect how you calculate depreciation for that item in the 2005-2006 tax year and all the years after that.

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Next up: EE 33: Annual rate for fixed life intangible property

or “Calculating the yearly rate for property with a fixed legal lifespan”
Next

Part E Timing and quantifying rules
Depreciation

EE 32Election in relation to certain depreciable property acquired on or after 1 April 2005

  1. This section applies when a person acquired an item of depreciable property that is not a building—

  2. on or after 1 April 2005; and
    1. before the commencement of the person’s income year corresponding to the 2006–07 tax year.

      1. The person may choose to calculate the depreciation loss for the item of depreciable property for income years corresponding to the 2005–06 tax year and later tax years in accordance with the economic rate determined for the kind of item under section EZ 23 (Economic rate for plant or equipment acquired before 1 April 2005 and buildings acquired before 19 May 2005).

      2. The person must make an election under subsection (2) in the person’s return of income for the 2005–06 tax year.

      Compare
      Notes
      • Section EE 32(2): amended (with effect on 1 April 2008 and applying for the 2008–09 and later income years), on , by section 120(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
      • Section EE 32 list of defined terms building: inserted (with effect on 30 July 2009), on , by section 84 of the Taxation (Budget Measures) Act 2010 (2010 No 27).
      • Section EE 32 list of defined terms economic depreciation rate: repealed (with effect on 1 April 2008), on , by section 120(2) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
      • Section EE 32 list of defined terms economic rate: inserted (with effect on 1 April 2008), on , by section 120(2) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).