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Income tax Dates

  • MAY 7
    Provisional tax payments are due if you have a March balance date and use the standard, estimation or ratio options.
  • JUN 28
    Provisional tax payments are due if you have a March balance date and use the ratio option.
  • JUL 7
    Income tax returns are due if you do not have an extension of time.

What assets you can claim

You must claim depreciation on assets kept in your business for longer than a year. These are capital expenses or capital (fixed) assets.

Some assets do not depreciate, including:

  • land
  • trading stock
  • franchise fees
  • assets that cost less than $500
  • intangible assets, like goodwill.

Pooling assets

You can group low value assets together and depreciate as a pool. Once you include assets in a pool, you cannot take them out. Pooled assets:

  • depreciate using the diminishing value method
  • must use the lowest depreciation rate from assets in the pool
  • cannot be buildings.

GST and depreciation

If you're registered for GST, you claim depreciation on the price of the asset less the GST charged.

If you are not registered for GST, you claim depreciation on the total price of the asset, including GST.

Depreciation rates

Assets are depreciated at different rates. We set depreciation rates based on the cost and useful life of assets.

Depreciation methods

There are 2 methods for depreciation. The total depreciation you can claim over an asset’s life is the same for both methods.

The diminishing value method (DV)

This method depreciates at a high rate for the start of an asset's life and has a reducing rate each year.

The straight line method (SL)

This method depreciates at the same rate each year.

You do not have to use the same method for all your assets. You can change methods at the end of each year. If you change methods, use the adjusted tax value to work out new depreciation.