Rural and Agribusiness Tax Depreciation

The details

  • Mixed farming operation comprising of intensive agriculture, cash cropping and livestock operations

Undertaking an in-depth tax depreciation assessment resulted in a first-year depreciation claim of $347,254, which boosted the net cash position of the operation by $104,176.

No Tax Depreciation Claim Applied Tax Depreciation Claim $347,254 p/a Applied
Total Annual Income: ($178,688 p/m) $2,144,264 Total Annual Income: ($178,688 p/m) $2,144,264
Total Annual Expenses: ($985,457) Total Annual Expenses: ($985,457)
Cash Income minus Expenses $1,158,807 Cash Income minus Expenses $1,158,807
Tax Depreciation Claimed: $ – Tax Depreciation Claimed: ($347,254)
Pre-Tax Profit: $1,158,807 Pre-Tax Profit: $811,553
Tax Payable (@30%): ($347,642) Tax Payable (@30%): ($243,466)
Net Annual Cash Position: $811,165 Net Annual Cash Position: $915,341
Monthly After Tax Cash Position: $67,597 Monthly After Tax Cash Position: $76,278
The additional tax benefit per annum amounts to $104,176

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

Acumentis has been servicing similar clients through our network of 45 offices nationally to help reduce tax and improve cash flows for clients.

Region/Area State Type of Property Purchase Price Total Tax Dep Claim
Erragulla Plains WA Cropping Serials $90,600,000 $7,329,297
Tintinara SA Vineyards $18,000,000 $1,123,510
Genoa Vic Cattle Farm $2,030,000 $288,739
Wagga Wagga NSW Sheep/Cropping $8,930,000 $844,885
Stanthorpe Qld Sheep $14,000,000 $3,541,824
Tenant Creek NT Cattle Farm $14,000,000 $3,759,082

 

Why choose Acumentis

Have one point of contact for all your client’s property needs.

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.

Value

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.