Reserve Bank December Board Meeting Minutes
In its last meeting on the 6th of December, the Board decided to lower the cash rate to 4.25 per cent citing a potential slowdown in China’s growth, sovereign credit and banking problems in Europe and precautionary behaviour by firms and households. Today the detailed board minutes note that the decision was a difficult one,…
Read MoreScrapping & Tax Depreciation – Writing off an asset
Previously I’ve written about how effective lives are determined, which gave a quick insight into the process of ‘scrapping’. In simple terms, scrapping is the process of throwing away an asset that has reached the end of its physical life. The benefit from a depreciation perspective is that the remaining written down value of the…
Read MoreProperty Tax Depreciation – Effective Lives
Property Tax Depreciation – How does the commissioner determine the effective life of a depreciating asset? I’m often asked where ‘effective lives’ come from, and the short answer is the Commissioner of taxation. The long answer is a lot more complicated than that. For those uninitiated in how depreciation rates are calculated for plant &…
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