Skip to main content
Inland Revenue

Tax Policy

PUBLISHED 11 August 2010

Release of depreciation issues paper

In his media statement today, Revenue Minister announced the release of a tax policy issues paper which seeks feedback on suggested changes to depreciation of non-residential building fit-outs and to the grandparenting of depreciation loading for assets acquired before Budget 2010.

Submissions are due by 1 September 2010.

Hon Peter Dunne
Minister of Revenue

Media statement

Dunne: views sought on depreciation legislation

A tax policy issues paper released today is seeking feedback on two sets of suggested changes to remove uncertainty on matters relating to the depreciation of assets, including the fit-out of non-residential buildings, Revenue Minister Peter Dunne has announced.

The Government announced the review of the tax treatment of building fit-outs during Budget 2010. The review was prompted by concerns about the treatment of non-residential building fit-outs. 

The officials' issues paper suggests an option to clarify the law on when non-residential fit-outs can be depreciated separately from the building. 

The second clarification relates to the grandparenting of depreciation loading for certain assets acquired before Budget 2010. 

The issues paper suggests that depreciation-loading should apply when there was a commitment to purchase or construct an asset prior to 20 May 2010. 

"The tax system aims to impose taxes on investment in as neutral a manner as possible to remain fair. For this reason, it is appropriate to examine these depreciation issues and address them," Mr Dunne said.

The issues paper, Post-Budget depreciation issues is available at Submissions close on 1 September 2010.


Mark Stewart | Press Secretary | Office of Hon Peter Dunne
Cell +64 21 243 6985