The property

An 5,500m2 industrial complex, built 2001, ~35km from Perth CBD

The situation

A financial advisory practice needed to complete end-of-year financials for their commercial client. A Tax Depreciation Schedule was required to improve the tax outcome on the client’s financial result.

Where we helped

Asset Reports was engaged directly by the financial advisory practice to inspect their client’s property, and prepare a Tax Depreciation Schedule. Asset Reports was advised that the property was a commercial building, which attracts depreciation rates of 2.5% p.a. (ie over 40 years).


The real kicker

In performing our usual, rigorous research on each property, Asset Reports discovered eight successive building applications lodged with the local authority, indicating incremental expansion on the building. This enabled higher cumulative tax benefits for the owner, than if the finished facility was simply assumed to be a single-stage constructed building.

Furthermore, the building was in fact a manufacturing facility, rather than a commercial property. The significance of this distinction is that a manufacturing facility is entitled to a 4% depreciation rate (ie over 25 years) than a commercial property (2.5%, 40 years). By example, if Asset Reports had taken the property at face-value, the first year deductions would have been substantially less.

By our detailed investigations of council records, and comprehensive working knowledge of the ATO requirements, we enabled a much better result for our client’s client. And importantly for our client, they were recognised by their client for engaging subject matter experts, genuinely interested in optimising the outcome for the property owner.

Finally, we attended the site within 48hrs of the booking, and delivered the completed report within 7 days – some 12 weeks sooner than our competitor offered the advisory firm. This enabled the advisory firm to immediately complete their engagement, and finalise their report for their client.

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