Other, non-structural, items can continue to be depreciated separately. The attached taxmail discusses the review’s conclusions in greater detail.
The officials’ issues paper and accompanying draft legislation (available for download at www.taxpolicy.ird.govt.nz) broadly confirms the approach that has been adopted by most taxpayers to date.
It is pleasing that officials have recognised that fit-out for commercial, retail and industrial property does not have a long life, and is periodically replaced due to factors such as obsolescence and changing tenants’ preferences.
We will be working with our clients over the coming weeks to analyse the proposals and draft legislation in greater detail, to ensure their workability.
If you have any questions on the above, please speak to your usual KPMG advisor or contact: