Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Schedule 12: Old banded rates of depreciation

You could also call this:

“Old rates for calculating how much value assets lose over time”

This table shows old rates for calculating how much value things lose over time. It’s called depreciation. The table has two ways to figure this out: one is called “diminishing value” and the other is “straight-line”.

The table lists different percentages for each method. For example, if you use the diminishing value method, you might use 2%, 4%, or 6%. If you use the straight-line method, you might use 1.5%, 3%, or 4%.

The percentages go up to 100% for both methods. This means some things might lose all their value very quickly, while others lose value more slowly over time.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1523344.

Topics:

Money and consumer rights > Taxes

Schedule 11: New banded rates of depreciation, or

“Rates for calculating how quickly different things lose value over time”

Schedule 13: Depreciable land improvements, or

“List of land-based structures and facilities that can be claimed as tax deductions due to wear and tear”

12Old banded rates of depreciation

This is a small table having 2 columns. The first row is the headings for the columns.
Column 1 Diminishing value depreciation rate (%)	Column 2 Straight-line equivalent (%)
2	1.5
4	3
6	4
7.5	5.5
9.5	6.5
12	8
15	10
18	12.5
22	15.5
26	18
33	24
40	30
50	40
63.5	63.5
100	100