Changes to Motorhome Depreciation Rate

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Changes to Motorhome Depreciation Rate

Posted on March 17, 2020

 

There has been a big change to the depreciation rate on motor vehicles and motorhomes.  New Zealand Customs recently announced there is a change in the depreciation rates applied to motor vehicles and motorhomes from 1^st of March 2020.

 

Reason for the change

These rates are already used by Inland Revenue and it will make it less confusing for importers and improve consistency across government agencies. There will be a consistency of depreciation rates used for imported goods for importers and also enable Customs to justify and explain the basis of the rates.*

As of 1^st March 2020, a straight-line depreciation of 13.5% per year will be applied to motorhomes.

 

How to work it out 

On a $100,000.00 NZD Motorhome – owned and used in the UK for 3 months.

$100,000.00 NZD x 13.5% = 13,500.00 / 12 = $1125.00 per month.

Motorhome arrives in NZ after 4 months = $1125.00 x 4 = $4500.00 NZD depreciation (old deprecation rate 20% - $20,000.00)   

     

Information we have been given

McCullough Shipping has been in touch with New Zealand Customs since the new announcement and can verify the following:

 

1. If the importer (or their agent) can prove the goods were purchased prior to 01 March 2020 and those goods are imported into New Zealand prior 01 March 2021, the old depreciation rates will still apply. 

 

2. Customs is in the process of updated fact sheets and transferring the information to their website. If you have any old fact sheets, please assume they are out-of-date and refer to the New Zealand Customs website for real-time information. 

 

3. Clients who have made a deposit on a motorhome can use the old depreciation rates if they can prove they have a signed “contract of sale” to purchase the motorhome before 1 March 2020.  The vehicle will have to be imported into NZ prior to 1 March 2021 to qualify.  

 

Summary

In short, if you have made a deposit or a payment on a motorhome and you import before March 2021 you will qualify for the old deprecation rates.

 

If you are unsure about how this affects your motorhome or have any questions about this new law, please contact us and we will either answer your questions or be able to put you in the right direction.  

 

IMPORTANT: On depreciation that there is a 3-month minimum use before you can claim.

 

 

*https://www.customs.govt.nz/about-us/news/important-notices/change-in-depreciation-rates-for-used-motor-vehicles/

 

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