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EZ 13: Annual rate for item acquired on or after 1 April 1993 and before end of person’s 1994–95 income year
or “Annual rate for depreciable items bought between April 1993 and 1995 tax year-end”
You could also call this:

“Choosing and using old depreciation rates for items acquired before 1995”

You can choose to use the pre-1993 depreciation rate for items you got before the end of your 1994-95 income year. This doesn’t include buildings that have an economic rate or provisional rate of more than 0% because they’re expected to last 50 years or more.

To use this rate, you need to apply it to the item in your tax return for the year you’re making the choice. Once you’ve made this choice for a year, you can’t change it for that year.

If you choose the pre-1993 depreciation rate, you have some options. If it’s a diminishing value rate, you can use a straight-line rate instead. If it’s a straight-line rate, you can use a diminishing value rate instead. There are specific steps to follow for each of these options, which involve using schedule 10.

The pre-1993 depreciation rate is calculated using a formula that adds up three different rates: the section 108 rate, the section 108A rate, and the section 113A rate. These rates are based on what the Commissioner allowed for the 1992-93 tax year under different sections of the old Income Tax Act 1976.

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Next up: EZ 15: Annual rate for excluded depreciable property: 1992–93 tax year

or “Depreciation rate for certain old property in the 1992-93 tax year”
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Part E Timing and quantifying rules
Terminating provisions

EZ 14Pre-1993 depreciation rate

  1. A person may choose the pre-1993 depreciation rate for all items, or any item, that they acquire before the end of their 1994–95 income year excluding buildings that have an economic rate or provisional rate of more than 0% due to an estimated useful life of 50 years or more.

  2. The election is made by applying the pre-1993 depreciation rate for the item to the item in the person’s return of income for the income year for which the election is made.

  3. The election must not be changed for the income year for which it is made.

  4. A person who chooses the pre-1993 depreciation rate has the following choices:

  5. if the rate is a diminishing value rate, the person may instead use the straight-line rate by—
    1. rounding the diminishing value rate to the nearest rate specified in schedule 10, column 1 (Straight-line equivalents of diminishing value rates of depreciation); and
      1. taking the equivalent straight-line rate specified in column 2 of the schedule; or
      2. if the rate is a straight-line rate, the person may instead use the diminishing value rate by—
        1. rounding the straight-line rate to the nearest rate specified in schedule 10, column 2; and
          1. taking the equivalent diminishing value rate specified in column 1 of the schedule.

          2. The pre-1993 depreciation rate is the rate calculated using the formula—

            section 108 rate + section 108A rate + section 113A rate.

            Where:

            • The items in the formula are defined in subsections (7) to (9).

            • Section 108 rate is the rate of depreciation that the Commissioner allowed persons with a standard balance date to use for the 1992–93 tax year to calculate a deduction for depreciation under section 108 of the Income Tax Act 1976, as in force for the 1992–93 tax year, for property of the same kind as the item.

            • Section 108A rate is the rate of additional deduction under section 108A of the Income Tax Act 1976, as in force for the 1992–93 tax year, for which the item was eligible for the 1992–93 tax year.

            • Section 113A rate is the rate of supplementary deduction under section 113A of the Income Tax Act 1976 for which the item was eligible for the 1992–93 tax year.

            Compare
            Notes
            • Section EZ 14(1): amended, on , by section 70(1) (and see section 70(3) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
            • Section EZ 14(1): amended, on (applying for the 2011–12 and later income years), by section 86(1) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
            • Section EZ 14 list of defined terms building: inserted, on , by section 70(2)(b) (and see section 70(3) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
            • Section EZ 14 list of defined terms building: repealed, on , by section 14(2)(a) (and see section 14(3) for application) of the COVID-19 Response (Taxation and Social Assistance Urgent Measures) Act 2020 (2020 No 8).
            • Section EZ 14 list of defined terms economic rate: inserted, on (applying for the 2011–12 and later income years), by section 86(2) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
            • Section EZ 14 list of defined terms estimated useful life: inserted, on (applying for the 2011–12 and later income years), by section 86(2) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
            • Section EZ 14 list of defined terms provisional rate: inserted, on (applying for the 2011–12 and later income years), by section 86(2) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
            • Section EZ 14 list of defined terms residential building: repealed, on , by section 70(2)(a) (and see section 70(3) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).