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EE 60: Total deductions in section EE 56
or “How to calculate total deductions for an item's adjusted tax value”
You could also call this:

“How the yearly depreciation rate is calculated for different types of property”

The annual rate is the yearly depreciation rate that applies to an item of depreciable property you own. There are different rates for different types of property:

If you got the item in your 1995-96 income year or later, and it’s not covered by other special rules, the rate is set by section EE 31(2)(a) or (b), or section EE 31(3)(a).

For international aircraft you got in your 1995-96 income year or later, the rate is set by section EE 31(2)(c) or section EE 31(3)(b).

For buildings with an economic rate or provisional rate above 0% due to an estimated useful life of 50 years or more, which you got in your 1995-96 income year or later, the rate is set by section EE 31(2)(d) or section EE 31(3)(c).

For fixed life intangible property that isn’t excluded depreciable property, the rate is set by section EE 33.

For patents covered by section EE 34, that section sets the rate.

For design registrations covered by section EE 34B, that section sets the rate.

There are also special rates for items you got before the end of your 1994-95 income year, excluded depreciable property, and special excluded depreciable property.

The rate is 0% for special excluded depreciable property that would be excluded depreciable property except for the rule in section EE 64(3).

Section FA 11B(7) can change these rules for certain operating leases.

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Next up: EE 62: Meaning of depreciable intangible property

or “What counts as property you can claim depreciation on that you can't physically touch”
Next

Part E Timing and quantifying rules
Depreciation: Definitions

EE 61Meaning of annual rate

  1. Annual rate means the annual depreciation rate applying to an item of depreciable property that a person owns. The rate is 1 of the rates described in subsections (2) to (5B).

  2. The rate is the rate set by section EE 31(2)(a) or (b), or by section EE 31(3)(a), as applicable, if both the following apply to the item:

  3. the person acquires it in their 1995–96 income year or a later income year; and
    1. the item is not dealt with in any of subsections (3) to (5).

      1. The rate is the rate set by section EE 31(2)(c), or by section EE 31(3)(b), as applicable, if the item is an international aircraft that the person acquires in their 1995–96 income year or a later income year.

      2. The rate is the rate set by section EE 31(2)(d), or by section EE 31(3)(c), as applicable, if the item is a building that—

      3. has an economic rate or provisional rate of more than 0% due to an estimated useful life of 50 years or more; and
        1. the person acquires in their 1995–96 income year or a later income year.

          1. The rate is the rate set by section EE 33 if both the following apply to the item:

          2. the item is an item of fixed life intangible property; and
            1. the item is not an item of excluded depreciable property.

              1. The rate is the rate set by section EE 34 if the item is a patent and section EE 34 applies to the item and the person.

              2. The rate is the rate set by section EE 34B if the item is a design registration and section EE 34B applies to the item and the person.

              3. The rate is the rate set by section EZ 13 (Annual rate for item acquired on or after 1 April 1993 and before end of person’s 1994–95 income year) if all the following apply to the item:

              4. the person acquired it before the end of their 1994–95 income year; and
                1. the item is not an item of fixed life intangible property; and
                  1. the item is not an item of excluded depreciable property.

                    1. The rate is the rate set by section EZ 15 (Annual rate for excluded depreciable property: 1992–93 tax year) if the item is an item of excluded depreciable property.

                    2. The rate is 0% for all depreciation methods if the item is an item of special excluded depreciable property that would be an item of excluded depreciable property but for the exclusion in section EE 64(3).

                    3. Section FA 11B(7) (Adjustments for certain operating leases) overrides this section.

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                    Notes
                    • Section EE 61(1): amended (with effect on 1 April 2015 and applying for the 2015–16 and later income years), on , by section 127(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
                    • Section EE 61(2): amended (with effect on 20 May 2010), on , by section 81(1) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
                    • Section EE 61(3): amended (with effect on 20 May 2010), on , by section 81(2) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
                    • Section EE 61(3B) heading: inserted, on (applying for the 2011–12 and later income years), by section 81(3) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
                    • Section EE 61(3B) heading: amended, on , by section 60(1) (and see section 60(5) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
                    • Section EE 61(3B): inserted, on (applying for the 2011–12 and later income years), by section 81(3) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
                    • Section EE 61(3B): amended, on , by section 60(2) (and see section 60(5) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
                    • Section EE 61(5B) heading: inserted (with effect on 1 April 2015 and applying for the 2015–16 and later income years), on , by section 127(2) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
                    • Section EE 61(5B): inserted (with effect on 1 April 2015 and applying for the 2015–16 and later income years), on , by section 127(2) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
                    • Section EE 61(7B) heading: replaced, on , by section 60(3) (and see section 60(5) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
                    • Section EE 61(7B): replaced, on , by section 60(3) (and see section 60(5) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
                    • Section EE 61(8) heading: inserted, on , by section 358 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
                    • Section EE 61(8): inserted, on , by section 358 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
                    • Section EE 61 list of defined terms building: inserted, on , by section 60(4)(b) (and see section 60(5) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
                    • Section EE 61 list of defined terms building: repealed, on , by section 10(4)(a) (and see section 10(5) for application) of the COVID-19 Response (Taxation and Social Assistance Urgent Measures) Act 2020 (2020 No 8).
                    • Section EE 61 list of defined terms design registration: inserted (with effect on 1 April 2015), on , by section 127(3) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
                    • Section EE 61 list of defined terms economic rate: inserted, on (applying for the 2011–12 and later income years), by section 81(5) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
                    • Section EE 61 list of defined terms estimated useful life: inserted, on (applying for the 2011–12 and later income years), by section 81(5) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
                    • Section EE 61 list of defined terms provisional rate: inserted, on (applying for the 2011–12 and later income years), by section 81(5) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
                    • Section EE 61 list of defined terms residential building: repealed, on , by section 60(4)(a) (and see section 60(5) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
                    • Section EE 61 list of defined terms special excluded depreciable property: inserted, on , by section 60(4)(b) (and see section 60(5) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
                    • Section EE 61 list of defined terms special excluded depreciable property: repealed, on , by section 10(4)(a) (and see section 10(5) for application) of the COVID-19 Response (Taxation and Social Assistance Urgent Measures) Act 2020 (2020 No 8).