Depreciation – and what it is for?


I am sure it was back in the eighties when we had substantial tax reforms, amongst other things, and the Labour Government brought in self-funded depreciation for councils etc.

This meant that they suddenly had to find real money to put away for the rainy day when the drains needed renewing and water systems restored. The howls of rage reverberated through the land as we were talking real money here. Normally, when a business claims depreciation it reduces their tax bill. They don’t usually save that reduction for future use. Councils, however, were required to save their depreciation for the future replacements.

So where is this money? There is a refrain at the moment that the councils (Auckland anyway) cannot even replace old and decaying infrastructure, let alone build new. But, they should have at least thirty years of saved money to do the renewal. Where is it?

Frances Denz MNZM

Frances has been instrumental in helping entrepreneurs establish more than 4000 businesses since 1986. She is an authority on business start-ups and regional economic development and is a keynote speaker at conferences internationally. Frances is the co-founder of Stellaris Ltd and specialises in the small business and government sectors.

In 2013 Frances was honoured by the Queen with Membership of the Order of New Zealand (MNZM) for services to business.

As a Maori woman of Ngati Tuwharetoa and Tainui descent, Frances has worked with many Maori organisations to establish expertise in self-employment. Frances has special interests in the health and horticulture industries.

She was the founding chair of the Women’s Loan Fund.

Frances is the author of Hope and Rehabilitation, Able to do Business and Women at the Top. She is passionate about encouraging small businesses to establish good governance and management in order to develop into very successful businesses.

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