Tax Depreciation Melbourne

Tax depreciation on investment property with Billings + Ellis

Together with specialist partners we can ensure that investment property owners are claiming the maximum allowable depreciation deductions.

Billings and Ellis, accountants and business advisors, divider

What is depreciation?

As a property gets older, and the building and items within it wear out, owners of income-producing properties are allowed to claim a deduction relating to this wear and tear.

Depreciation and capital works deductions can be claimed by the owners of a variety of building types including residential rental properties, and commercial properties such as offices, hotels, restaurants, retail spaces, educational facilities, warehouses, and agricultural properties, among many others.

Depreciation can be claimed for both capital works (fixed items such as windows, mortar, and concrete) and plant and equipment items* (removable assets within a property such as carpets, air conditioning units, and smoke alarms).

On average most residential investors are able to claim $5,000 to $10,000 in depreciation deductions in the first full financial year alone.

Despite these significant savings, research shows that 80 percent of property investors are failing to maximise the deductions claimed from property depreciation and are therefore missing out on thousands of dollars in their pockets.

It is an ATO ruling that qualified quantity surveyors are used to determine the deductions claimed for property depreciation. Billings + Ellis has partnered with the property depreciation specialists, BMT Tax Depreciation, to deliver ATO-compliant services to clients with investment properties.

Investment Property Depreciation


*Under proposed changes outlined in draft legislation (section 2 of Treasury Laws Amendment Bill 2017), investors who exchange contracts on a second-hand residential property after 7:30 pm on 9th May 2017 will no longer be able to claim depreciation on plant and equipment assets.

Investors who purchased prior to this date and those who purchase a brand new property will still be able to claim depreciation as they were previously.

Investors should note that these changes are not yet law, as the legislation still needs to be passed through the Senate for confirmation. BMT Tax Depreciation remains in discussion with government around the new changes and will keep Billings + Ellis clients informed on the outcome.

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Investment property deductions
Billings and Ellis, accountants and business advisors, divider

Clients of Billings + Ellis can benefit from the expertise of BMT Tax Depreciation, qualified Quantity Surveyor, to help maximise depreciation deductions for an investment property.

BMT Tax Depreciation is a national quantity surveying firm specialising in the preparation of tax depreciation schedules. The information in the above article was provided by BMT Tax Depreciation. Bradley Beer (B. Con. Mgt, AAIQS, MRICS, AVAA) is the Chief Executive Officer of BMT Tax Depreciation.

Investment property tax depreciation