Tax Depreciation

Tax depreciation benefits

“A Tax Depreciation Schedule could boost your return by up to $15,000 in one financial year.”

Nathan King

National Director – Advisory, State Government & Projects
P: 0416 082 499

At Acumentis, our Quantity Surveying team are trained and qualified to undertake inspections and supply detailed reports. On top of this, each individual is fully compliant with the Australian Taxation Office and government legislation.  Partnering with the experts at Acumentis means:

  • 40-year schedules (only one report for the life of your investment)
  • Maximum deductions – your schedules include recognised acceleration techniques to maximise your depreciation deductions sooner
  • We keep up to date with all relevant tax legislation, so you don’t miss out
  • All members of our Quantity Surveying team are Registered Tax Agents endorsed by the Australian Institute of Quantity Surveyors (AIQS)
  • Nationwide coverage of all property depreciation types including agricultural, residential, and commercial
  • 100% tax-deductible fees

 

To maximise your depreciable deductions, reach out to your local Tax Depreciation specialist below, call us on 1300 882 401 or request a quote today

Your team of
experts

State contacts
Ernest van Zyl
Manager Property Advisory Services
Nathan King
National Director – Advisory, State Government & Projects, State Director – WA
Perth
Tom McDouall
Regional Director
Newcastle
Heath Craft
Valuer
Albury
Maria Ergos
Client Services Team Leader
Sydney Residential
Gregory Jordan
Valuer
Port Macquarie
Jack Prosser
Valuer
Port Macquarie
Louise de Savery
Senior Valuer
Newcastle
Harry Morrow
Valuer
Tamworth
Simon Mandile
Senior Valuer
Sydney
Emmanuel Ergos
Senior Valuer
Sydney
Justine Franklin
Valuer
Albury - Wodonga
Adam Scerri
State Director - Residential
Sydney
Amy Frankel
Regional Director
Port Macquarie
Matt Wilson
Senior Valuer
Cairns
Sarah Banner
Director - Valuations | Residential
Brisbane
Clancy Miller
Valuer
Townsville
Paul Krause
Senior Valuer
Mackay
Jack Macdonald
Senior Valuer
Roma
Ernest van Zyl
Manager Property Advisory Services
Thomas Hewitt
Associate Director
Brisbane
Henry Brown
Associate Director
Brisbane
Richard Holles
Senior Valuer
Toowoomba
Hannah Cooley
Valuer
Toowoomba
Zac Beveridge
Valuer
Toowoomba
Wayne Airey
Associate Director
Sunshine Coast
Will Smallacombe
Senior Valuer
Cairns
Alexandra Doneley
Senior Valuer
Emerald
Geoff Duffield
State Director Residential QLD
Brisbane
Jany Pezard
Director - Valuations
Sunshine Coast
Gareth Turner
Senior Valuer
Brisbane
Jim Lyons
Director Valuations
Brisbane
Lachlan Dunsdon
National Director Rural & Agribusiness
Brisbane
Mark Robins
State Director SA
Adelaide
Leon Sleiters
Valuer
Hobart
Harry Chapman
Valuer
Launceston
Harry Chapman
Valuer
Launceston
Tyrone Tweddle
Valuer
Hobart
Joe Stansfield
Regional Director - Tasmania (North)
Launceston
David Duffield
Regional Director - Tasmania (South)
Hobart
Rosheen Stephenson
Regional Director
Gippsland
Mark Pastor
Associate Director
Melbourne
Damien Stone
State Director Residential Victoria
Melbourne
Felicity Graham
Senior Valuer
Bunbury
Brandon Prince
Valuer
Perth
Curtis Borszeky
Valuer
Perth
Rachel Kendall
Valuer
Mandurah
Michael Sinclair
Valuer
Perth
Yury Bonne
Valuer
Perth
Dean Munns
Associate Director
Perth
James Sholdas
Associate Director Valuations
Perth
Tom O’Sullivan
Associate Director Valuations
Perth
Kate Bingham
Associate Director
Perth
Tony Gorman
Director Valuations
Perth
Ben Lamers
Director Acumentis Advisory
Perth
Aaron Hughes
Regional Director
South West WA
Scott Robinson
Regional Director
Mandurah
Richard Graham
State Director Rural & Agribusiness WA
Bunbury
Mark Eaton
Regional Director
Albany
Damien Schifferli
Regional Director - South West WA
Busselton
Blake Lieschke
State Director Residential WA
Perth
Nathan King
National Director – Advisory, State Government & Projects, State Director – WA
Perth
Ernest van Zyl
Manager Property Advisory Services
Nathan King
National Director – Advisory, State Government & Projects, State Director – WA
Perth
Tom McDouall
Regional Director
Newcastle
Heath Craft
Valuer
Albury
Maria Ergos
Client Services Team Leader
Sydney Residential
Gregory Jordan
Valuer
Port Macquarie
Jack Prosser
Valuer
Port Macquarie
Louise de Savery
Senior Valuer
Newcastle
Harry Morrow
Valuer
Tamworth
Simon Mandile
Senior Valuer
Sydney
Emmanuel Ergos
Senior Valuer
Sydney
Justine Franklin
Valuer
Albury - Wodonga
Adam Scerri
State Director - Residential
Sydney
Amy Frankel
Regional Director
Port Macquarie
Matt Wilson
Senior Valuer
Cairns
Sarah Banner
Director - Valuations | Residential
Brisbane
Clancy Miller
Valuer
Townsville
Paul Krause
Senior Valuer
Mackay
Jack Macdonald
Senior Valuer
Roma
Ernest van Zyl
Manager Property Advisory Services
Thomas Hewitt
Associate Director
Brisbane
Henry Brown
Associate Director
Brisbane
Richard Holles
Senior Valuer
Toowoomba
Hannah Cooley
Valuer
Toowoomba
Zac Beveridge
Valuer
Toowoomba
Wayne Airey
Associate Director
Sunshine Coast
Will Smallacombe
Senior Valuer
Cairns
Alexandra Doneley
Senior Valuer
Emerald
Geoff Duffield
State Director Residential QLD
Brisbane
Jany Pezard
Director - Valuations
Sunshine Coast
Gareth Turner
Senior Valuer
Brisbane
Jim Lyons
Director Valuations
Brisbane
Lachlan Dunsdon
National Director Rural & Agribusiness
Brisbane
Mark Robins
State Director SA
Adelaide
Leon Sleiters
Valuer
Hobart
Harry Chapman
Valuer
Launceston
Harry Chapman
Valuer
Launceston
Tyrone Tweddle
Valuer
Hobart
Joe Stansfield
Regional Director - Tasmania (North)
Launceston
David Duffield
Regional Director - Tasmania (South)
Hobart
Rosheen Stephenson
Regional Director
Gippsland
Mark Pastor
Associate Director
Melbourne
Damien Stone
State Director Residential Victoria
Melbourne
Felicity Graham
Senior Valuer
Bunbury
Brandon Prince
Valuer
Perth
Curtis Borszeky
Valuer
Perth
Rachel Kendall
Valuer
Mandurah
Michael Sinclair
Valuer
Perth
Yury Bonne
Valuer
Perth
Dean Munns
Associate Director
Perth
James Sholdas
Associate Director Valuations
Perth
Tom O’Sullivan
Associate Director Valuations
Perth
Kate Bingham
Associate Director
Perth
Tony Gorman
Director Valuations
Perth
Ben Lamers
Director Acumentis Advisory
Perth
Aaron Hughes
Regional Director
South West WA
Scott Robinson
Regional Director
Mandurah
Richard Graham
State Director Rural & Agribusiness WA
Bunbury
Mark Eaton
Regional Director
Albany
Damien Schifferli
Regional Director - South West WA
Busselton
Blake Lieschke
State Director Residential WA
Perth
Nathan King
National Director – Advisory, State Government & Projects, State Director – WA
Perth

Tax Depreciation FAQs

The Australian Taxation Office (ATO) allows investment property owners to claim a tax deduction on the fair wear and tear on an investment property and it's fittings. Tax depreciation is essentially a non-cash deduction. You don’t necessarily have to directly incur the expense to be able to claim the deduction, you can inherit deductions upon acquisition of the property (different rules apply for residential properties purchased post 9 May 2017). Tax depreciation is split into two categories; Division 43 Capital Works Allowances (the building itself) and Division 40 Plant and Equipment (eg. carpets, blinds, A/C, ceiling fans etc.)  

Tax Depreciation helps; 

  • Reduce your taxable income which results in more cash in your pocket 
  • Increase your cashflow which could enable you to buy your next investment property sooner 
  • Provide a greater financial return for your investment supporting your financial freedom  

Division 43 Capital Works Allowances (the building itself) – bricks, roof, framing, windows, doors, plaster, kitchen cabinetry. 

Division 40 Plant and Equipment (carpets, blinds, A/C, ceiling fans, kitchen appliances etc). 

In residential division 40 is only allowed on new properties, or assets purchased by the current owner as new if the property settled post 9 May 2017. You are not allowed to claim a division 40 deduction for second-hand assets when the property settled or became income producing post 9 May 2017. 

Anyone who owns an income producing property. Tax depreciation is not available on your home/primary place of residence (PPOR). 

Depreciation tax deductions are available to residential property investors whose investment property was built after 15 September 1987, commercial properties when built after 20 July 1982 and any refurbishments/renovations/improvements from 27 February 1992. Owners do not have to know when these works were undertaken -- this is researched by the tax depreciation provider. Depreciation on plant and equipment is also available on all new buildings and all existing properties when purchased prior to 10 May 2017. In summary, 99.9% of investment properties will be entitled to some form of depreciation deduction.

Yes, the structure of an investment property has an effective life of 40 years and tax depreciation can be claimed on an investment property which was built post September 1987. Another tip which could save investors thousands is that their Accountant can help claim tax depreciation retrospectively, amending up to the past two financial year tax returns making the most of depreciation deductions which may have been lost through not claiming. Completely legitimate and the ATO actually encourages people to do this. 

Yes, and this is where Quantity Surveyor’s can add serious value. It does not matter if the works were undertaken by a previous owner. When an investment property is purchased the investor has also purchased the entitlement to claim depreciation on all of the property’s improvements.

Most houses 10+ years old will have had works done. The most typical being: 

  • Bathroom – commonly worth up to $25,000 
  • Kitchen – commonly worth up to $30,000 
  • Floor & Wall Tiles – commonly worth up to $10,000 

On a 10-30 year old property there is $65,000 right there which could be detailed in a tax depreciation schedule. 

If a client is about to renovate an investment property it may be worth recommending a pre-renovation inspection. This inspection allows a Quantity Surveyor to identify what assets or capital works are going to be demolished or thrown out. Value can be assigned to these assets and they can be written off as an immediate tax deduction. A pre-renovation inspection and ‘scrapping report’ can save thousands which can offset the loss made through the renovation period. 

Quantity Surveyors are recognised by the Australian Taxation Office (ATO) as the most suitably qualified professional to estimate the depreciable expenditure spent on the property prior to its purchase, as well as the value of the fittings and equipment within the property.  In accordance with ATO Tax Ruling 97/25, if a residential investment property, for example, was constructed after September 1987 and/or construction costs are unknown, a registered and qualified Quantity Surveyor must be engaged to produce a depreciation schedule. Unfortunately, an Accountant cannot do this for investors. 

How can we help you with your property needs?

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  • or call 1300 882 401