Section EE 61 — Income Tax Act 2007: Meaning of annual rate

EE 61 Meaning of annual rate Meaning (1) Annual rate means the annual depreciation rate applying to an item of depreciable property that a person owns. The rate is 1 of the rates described in subsections (2) to (5). 1995–96 income year or later (2) The rate is the rate set by section EE 31(2)(a) or (b), or by section EE 31(3)(a), as applicable, if both the following apply to the item: (a) the person acquires it in their 1995–96 income year or a later income year; and (b) the item is not dealt with in any of subsections (3) to (5). 1995–96 income year or later: international aircraft (3) The rate is the rate set by section EE 31(2)(c) , or by section EE 31(3)(b), as applicable, if the item is an international aircraft that the person acquires in their 1995–96 income year or a later income year. 1995–1996 income year or later: buildings with estimated useful lives of 50 years or more (3B) The rate is the rate set by section EE 31(2)(d) , or by section EE 31(3)(c), as applicable, if the item is a building that–– (a) has an economic rate or provisional rate of more than 0% due to an estimated useful life of 50 years or more; and (b) the person acquires in their 1995–96 income year or a later income year. Fixed life intangible property (4) The rate is the rate set by section EE 33 if both the following apply to the item: (a) the item is an item of fixed life intangible property; and (b) the item is not an item of excluded depreciable property. Patents, applications: complete specification before 1 April 2005 (5) The rate is the rate set by section EE 34 if the item is a patent and section EE 34 applies to the item and the person. 1994–95 income year (6) The rate is the rate set by section EZ 13 (Annual rate for item acquired on or after 1 April 1993 and before end of person’s 1994–95 income year) if all the following apply to the item: (a) the person acquired it before the end of their 1994–95 income year; and (b) the item is not an item of fixed life intangible property; and (c) the item is not an item of excluded depreciable property. Excluded depreciable property (7) The rate is the rate set by section EZ 15 (Annual rate for excluded depreciable property: 1992–93 tax year) if the item is an item of excluded depreciable property. Special excluded depreciable property (7B) The rate is 0% for all depreciation methods, if the item is an item of special excluded depreciable property that would be an item of excluded depreciable property but for the exclusion in section EE 64(3) . Exception (8) Section FA 11B(7) (Adjustments for certain operating leases) overrides this section. Defined in this Act: acquire , annual rate , building , depreciable property , economic rate , estimated useful life , excluded depreciable property , fixed life intangible property , income year , international aircraft , own , provisional rate , special excluded depreciable property Compare: 2004 No 35 s EE 52 Section EE 61(2): amended (with effect on 20 May 2010), on 28 May 2010, by section 81(1) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section EE 61(3): amended (with effect on 20 May 2010), on 28 May 2010, by section 81(2) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section EE 61(3B) heading: inserted, on 1 April 2011 (applying for the 2011–12 and later income years), by section 81(3) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section EE 61(3B): inserted, on 1 April 2011 (applying for the 2011–12 and later income years), by section 81(3) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section EE 61(7B) heading: inserted, on 1 April 2011 (applying for the 2011–12 and later income years), by section 81(4) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section EE 61(7B): inserted, on 1 April 2011 (applying for the 2011–12 and later income years), by section 81(4) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section EE 61(8) heading: inserted, on 1 April 2008, by section 358 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section EE 61(8): inserted, on 1 April 2008, by section 358 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section EE 61 list of defined terms building : inserted (with effect on 30 July 2009), on 28 May 2010, by section 84 of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section EE 61 list of defined terms economic rate : inserted, on 1 April 2011 (applying for the 2011–12 and later income years), by section 81(5) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section EE 61 list of defined terms estimated useful life : inserted, on 1 April 2011 (applying for the 2011–12 and later income years), by section 81(5) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section EE 61 list of defined terms provisional rate : inserted, on 1 April 2011 (applying for the 2011–12 and later income years), by section 81(5) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section EE 61 list of defined terms special excluded depreciable property : added, on 1 April 2011 (applying for the 2011–12 and later income years), by section 81(5) of the Taxation (Budget Measures) Act 2010 (2010 No 27).