Commercial Tax Depreciation

The details

  • The commercial property is an office with an attached warehouse, purchased recently for $4.2m
  • Comprising of a large workshop and storage floor area with raking and stock operating minor assembly lines and moveable industrial vehicles/forklift equipment
  • Total gross lettable area for the site is 2,875 sqm, split across two separate tenancy areas
  • Building features: storerooms, internal lab, staff room, meeting rooms, loading bays, 39-car parks

In this example we can see that the tax depreciation assessment undertaken had a massive impact on the tax amount claimable, with a claimable depreciation net amount sitting at $52,064 per annum. This depreciation is not a real cash flow, however, will be allocated to existing losses, or may be offset against taxable net income/profit depending on the case

No Tax Depreciation Claim Applied Tax Depreciation Claim $173,546 p/a Applied
Total Annual Income: ($25,548 p/m) $306,576 Total Annual Income: ($25,548 p/m) $306,576
Total Annual Expenses: ($126,530) Total Annual Expenses: (p/a) ($126,530)
Cash Income minus Expenses $180,046 Cash Income minus Expenses $180,046
Tax Depreciation Claimed:  $ –  Tax Depreciation Claimed:  ($173,546)
Pre-Tax Loss: $180,046 Pre-Tax Loss: $6,500
Tax Refund (@30%) ($54,014) Tax Refund (@30%) ($1,950)
Net Annual Cash Position: $126,032 Net Annual Cash Position: $178,096
Monthly After Tax Cash Position $10,503 Monthly After Tax Cash Position $14,841
The additional tax benefit per annum amounts to $52,064

Disclaimer: The tax depreciation amount within this case study relates to the first year claim and will vary depending on the method and asset allocations considered for tax depreciation. It will be different for each case and assessed on the business infrastructure, equipment/chattels and capital expenditure on the property recently

Why choose Acumentis

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Knowledge and experience

Our registered team of professionally certified valuers are experts across commercialresidential and rural and agribusiness property types. We know what depreciable items to look for ensuring that you get a comprehensive ATO approved depreciation schedule prepared by our certified Quantity Surveyors. 


We’ll provide you with one tax depreciation schedule that lasts up to 40 years of claim and the fee is 100% tax deductible. We can also undertake a retrospective tax depreciation schedule if you haven’t been claiming deductions so that you don’t miss the tax benefits. 

National reach

Wherever you are in Australia a qualified Acumentis property professional is nearby. With over 300 property professionals working from 45 offices in metropolitan, regional and rural Australia our team have your property and tax depreciation needs covered.