Tax Depreciation is crucial for any investment property strategy.

Depreciation is the accounting method used for calculating the loss in value of a building and it fixtures & fittings as the property gets older. With a Tax Depreciation Schedule, you can claim that loss on rental properties as a deduction in your tax return every year until the cost of the asset is fully written off.

The vast majority of Commercial Property Owners are not aware of the tax advantages that claiming depreciation brings, and how it can improve their overall Return on Investment. If you have owned the property for several years, a Tax Depreciation Schedule may even be retroactively applied, possibly allowing your accountant to amend up to two previous tax returns, resulting in an immediate rebate from the ATO.

Tax Depreciation is not just limited to the construction cost of a building, it also includes Plant & Equipment such as:

  • Fire Services

  • Car Parks

  • Machinery

  • Common Areas

  • Office Fit-Outs

  • Kitchenettes


Understanding the benefits of Tax Depreciation can increase your Return on Investment.

Below are some examples of typical deductions we’ve found for our commercial clients:

Property Type Commercial Unit Office/Warehouse Office & Fitout Industrial Warehouse
Property Description Warehouse (tilt-up with mezzanine) Office (two floors) and Warehouse Professional Services Office Office (two levels) and Three Warehouses
Size (m²) 214m² 541m² 165m² 2,744m²
Year Constructed 2016 2007 2004 1987, 1988, 1995, 2004
Deductions
(first year)
$7,147 $19,118 $20,061 $36,165
Refund* $2,144 $5,735 $6,018 $10,849

*Based on a business tax rate of 30%


How does it work?

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We conduct a thorough site inspection to assess the structure, fittings and furnishings at the property.

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Our qualified quantity surveyors produce the schedule detailing your deductions for up to 40 years.

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Your accountant applies these deductions to your annual tax return throughout the life of your property.


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