✨ Standard-cost for Chattels and Boarding Service Examples
1 DECEMBER 2005
NEW ZEALAND GAZETTE, No. 202
5121
Standard-cost for the use of chattels
Bedroom chattels and linen
| Category/item | Standard value | Straight-line depreciation rate | Approx. annual cost | Standard-cost calculation |
|---|---|---|---|---|
| Bed (single) | $500.00 | 12.5% | $62.50 | |
| Dresser/drawer unit | $400.00 | 12.5% | $50.00 | |
| Student desk and chair | $250.00 | 12.5% | $31.25 | |
| Drapes | $200.00 | 15.5% | $31.00 | $634.75 ÷ 52 weeks |
| Carpet | $500.00 | 24% | $120.00 | = $12.20 pw each boarder. |
| Heater (portable) | $100.00 | 40% | $40.00 | |
| Electric blanket | $150.00 | 40% | $60.00 | |
| Bathroom linen | $100.00 | 40% | $40.00 | |
| Bed linen, blankets, covers | $500.00 | 40% | $200.00 | |
| $634.75 |
The weekly standard-cost for the use of general household chattels has been apportioned to 50% ($12.50 weekly for each
boarder, up to two boarders) for situations where only one or two boarders are hosted, whereas the apportionment for the
third and subsequent number of boarders is reduced to 25% ($6.25 weekly for the third and subsequent number of boarders).
The apportioned weekly amounts are relative to the average household of three persons (2001 census).
Standard-cost for the use of chattels
General household chattels
| Category/item | Standard value | Straight-line depreciation rate | Approx. annual cost | Standard-cost calculation |
|---|---|---|---|---|
| Dining suite | $1,500.00 | 12.5% | $187.50 | Rounded up to $1,300.00 |
| Lounge suite | $3,000.00 | 12.5% | $375.00 | = $12.50 pw each for |
| Stove | $1,200.00 | 15.5% | $186.00 | the first two boarders |
| Microwave oven | $300.00 | 18% | $54.00 | and reduced to |
| Washing machine | $1,000.00 | 18% | $180.00 | $6.25 pw for the third |
| Television | $700.00 | 24% | $168.00 | and subsequent |
| Crockery | $200.00 | 40% | $80.00 | number of boarders. |
| Cutlery | $100.00 | 40% | $40.00 | |
| $1,270.50 |
APPENDIX B
Examples of the Application of Weekly Standard-cost for Boarding Service Providers
Example B1
A boarding service provider owns a domestic property, which costs $200,000.00. The boarding service provider receives an
accommodation supplement of $10.00 per week based on the location of the domestic property and their individual
circumstances. One boarder pays $180.00 per week for accommodation over a full year. There are no other private boarders.
The boarding service provider elected to use the standard-cost basis in accordance with this determination. As the weekly
service payment received is less than the determined weekly standard-cost per boarder of $200.00, they are not required to
return the income.
Example B2
A boarding service provider rents a domestic property for $300.00 per week. The boarding service provider receives an
accommodation supplement of $20.00 per week based on the location of the domestic accommodation and their individual
circumstances. One boarder pays $180.00 per week for accommodation over a full year. There are no other private boarders.
The boarding service provider elected to use the standard-cost basis in accordance with this determination. As the weekly
service payment received is less than the determined weekly standard-cost per boarder of $200.00, they are not required to
return the income.
Example B3
Sharon lives at home and pays her parents $120.00 per week for board. There are no other private boarders. As the payment for
board is less than the weekly standard-cost per boarder of $200.00, it will be exempt income and no tax liability arises for her
mother for boarding service provided.
APPENDIX C
Examples of the Application of the Weekly Standard-cost and Annual Capital Standard-cost for Boarding Service Providers
(Note: All the calculations are rounded to the nearest dollar.)
Example C1
A boarding service provider owns a domestic property. The purchase price of the domestic property is $200,000.00. The
boarding service provider receives an accommodation supplement of $10.00 per week based on the location of the domestic
property and their individual circumstances. One boarder is accommodated for $250.00 per week for a full year, in a household
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2005, No 202
Gazette.govt.nz —
NZ Gazette 2005, No 202
✨ LLM interpretation of page content
💰
Standard-cost for the use of chattels
(continued from previous page)
💰 Finance & RevenueChattels, Standard-cost, Depreciation, Boarding Services, Household Items
💰 Examples of the Application of Weekly Standard-cost for Boarding Service Providers
💰 Finance & RevenueBoarding Services, Standard-cost, Tax Exemption, Accommodation Supplement
- Sharon, Pays board to parents