Tax Depreciation is crucial for any investment property strategy.
Depreciation is the accounting method used for calculating the loss in value of a building and it fixtures & fittings as the property gets older. With a Tax Depreciation Schedule, you can claim that loss on rental properties as a deduction in your tax return every year until the cost of the asset is fully written off.
The vast majority of Commercial Property Owners are not aware of the tax advantages that claiming depreciation brings, and how it can improve their overall Return on Investment. If you have owned the property for several years, a Tax Depreciation Schedule may even be retroactively applied, possibly allowing your accountant to amend up to two previous tax returns, resulting in an immediate rebate from the ATO.
Tax Depreciation is not just limited to the construction cost of a building, it also includes Plant & Equipment such as:
Fire Services
Car Parks
Machinery
Common Areas
Office Fit-Outs
Kitchenettes
Understanding the benefits of Tax Depreciation can increase your Return on Investment.
Below are some examples of typical deductions we’ve found for our commercial clients:
| Property Type | Commercial Unit | Office/Warehouse | Office & Fitout | Industrial Warehouse |
| Property Description | Warehouse (tilt-up with mezzanine) | Office (two floors) and Warehouse | Professional Services Office | Office (two levels) and Three Warehouses |
| Size (m²) | 214m² | 541m² | 165m² | 2,744m² |
| Year Constructed | 2016 | 2007 | 2004 | 1987, 1988, 1995, 2004 |
| Deductions (first year) |
$7,147 | $19,118 | $20,061 | $36,165 |
| Refund* | $2,144 | $5,735 | $6,018 | $10,849 |
*Based on a business tax rate of 30%
Explore our 3D Virtual Tour to see some examples of deductions
available to a commercial warehouse:
Click and drag to explore different areas of the room
Blue items come under Capital Works (Division 43)
Green items come under Plant & Equipment (Division 40)
How does it work?
We conduct a thorough site inspection to assess the structure, fittings and furnishings at the property.
Our qualified quantity surveyors produce the schedule detailing your deductions for up to 40 years.
Your accountant applies these deductions to your annual tax return throughout the life of your property.
