Depreciation Allowances

Generally you must claim depreciation on fixed assets used in your business which have a useful life of more than a year. However you can elect not to depreciate an asset by applying to the IRD if you have special circumstances.

Not all fixed assets can be depreciated. Land is a common example of a fixed asset that cannot be depreciated. From the 2011 year dwellings will no longer be depreciated.

A fixed asset register must be maintained to show assets that are depreciated. This must show the asset, it’s cost the, the depreciation claimed, depreciation method used & the adjusted tax value for each asset. The adjusted tax value being the asset’s cost, less all depreciation deducted since purchase date.

For more information please call NUMB1Z Limited.

Fixed Asset or Repairs & Maintenance

Repairs and maintenance are an allowable deduction from income, however, certain items of repairs and maintenance may become a fixed asset that is required to be recorded on the fixed asset register and have depreciation deducted from it.

Repair & Maintenances is considered to be:

• Repair or maintenance of an existing piece of equipment; or
• Alteration not amounting to significant improvement in the assets value.

Capital Expenditure is considered to be:

• Purchase & Installation of a new piece of equipment; or
• Replacement of an existing asset;or
• Major alterations to the extent that they add improvement or value to the existing asset.

For more information please call NUMB1Z Limited.

Minimum Wage

There are three minimum wage rates as of 01 April 2017:

• Adult minimum wage is $15.75 per hour.
• New entrants minimum wage is  $12.60
• Training minimum wage is  $12.60 an hour.

Definition:

Adult minimum wage applies to all employees aged 16 and over who are not new entrants or trainees

The Starting-out minimum wage applies to:

• employees aged 16 and 17 who have not completed six months continuous service with their current employer.
• 18 and 19 year olds who have been on a government benefit for six months or more and who haven’t completed six months continuous employment since they started on the benefit.

The training minimum wage applies to employees:

• aged 20 and over who are doing recognised industry training involving at least 60 credits a year.
• doesn’t apply to employees who are being trained at work;
• doesn’t apply to an employee who is supervising or training other workers.

There is no statutory minimum wage for employees who are under 16 years old.