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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”
You could also call this:

“Extra wear and tear claim for heavily used business machinery”

If you own a business in New Zealand, you might be able to claim extra money for wear and tear on some of your machinery. This applies to machines that you use a lot in your business.

You can claim this extra money if your machine works for at least 16 hours each day, or if it runs all day and night. But this doesn’t work for all types of machines. You can’t claim it for things like cars, airplanes, or oil refinery equipment.

If your machine qualifies, you can claim this extra money for five years after you start using it. The amount you can claim depends on how much you use the machine. If you use it for at least 16 hours a day, you can claim 3% of its value each year. If you use it all day and night, you can claim 6% each year.

This extra money is on top of what you can already claim under section EZ 15. Remember, you can only claim this if you bought the machine just for your business.

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Next up: EZ 17: Additional amount of depreciation loss: between 16 December 1991 and 1 April 1994

or “Extra wear and tear deduction for certain assets purchased or improved from late 1991 to early 1994”
Next

Part E Timing and quantifying rules
Terminating provisions

EZ 16Amount of depreciation loss for plant or machinery additional to section EZ 15 amount

  1. This section applies when a person carrying on a business in New Zealand incurs, wholly for the purpose of the business, capital expenditure in acquiring, installing, or extending plant or machinery that—

  2. is excluded depreciable property; and
    1. is—
      1. plant or machinery that is normally in operation for an average of at least 16 hours each working day and is not normally in operation for 24 hours each working day:
        1. plant or machinery that is normally in operation for 24 hours each working day.

        2. This section does not apply to—

        3. aluminium smelting plant or machinery:
          1. cars:
            1. petroleum refining plant or machinery:
              1. ships, aircraft, or hovercraft:
                1. plant or machinery for which a deduction by way of a fixed rate was denied under section 108 of the Income Tax Act 1976 for the 1992–93 income year or an earlier relevant income year:
                  1. plant or machinery for which the Commissioner did not prescribe a differential rate for more than 1 shift operation when determining under section 108 of the Income Tax Act 1976 the rate of depreciation for the 1992–93 income year or an earlier relevant income year.

                    1. The person has an amount of depreciation loss for the plant or machinery under this section in addition to any amounts of depreciation loss that they have for the plant or machinery under section EZ 15.

                    2. The person has the additional amount of depreciation loss in the first, second, third, fourth, and fifth income years in which the plant or machinery is used in deriving assessable income.

                    3. The rate of the additional amount of depreciation loss is,—

                    4. for plant or machinery described in subsection (1)(b)(i), 3% of the diminishing value of the plant or machinery in each income year:
                      1. for plant or machinery described in subsection (1)(b)(ii), 6% of the diminishing value of the plant or machinery in each income year.

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