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TAX DEPRECIATION SCHEDULE

What is Property Tax Depreciation & Property Tax Allowances?

If you own an Investment Property, you are eligible Under Division 40 & 43 of the Income Tax Assessment Act to

claim depreciation on all Items of Plant contained within the property and secondly, if constructed after 1985, an allowance of either 2.5% or 4% is applicable on the construction cost, depending on its start date.

What are the benefits of getting a Tax Depreciation Schedule? What happens if I get audited by the ATO?

In obtaining a Tax Depreciation Schedule, it will maximise the amount of non-cash deductions you will receive in your Tax Return on your Investment Property.  A Tax Depreciation Schedule will differentiate between depreciable plant and the allowance available on the building works, and will provide a detailed analysis sufficient to satisfy strict ATO requirements. 

Can’t my Accountant do my Tax Depreciation Schedule? Do I need a Professional Quantity Surveyor to assist in the preparation of my Tax Depreciation Schedule?

Yes, an Accountant may assist, however under Division 40 & 43 of the Income Tax Assessment Act, the ATO encourages the Self-Assessment Scheme whereby the assistance of a Professional Quantity Surveyor is required in order to estimate accurate plant and building costs. Your Quantity Surveyor must also be registered with the Tax Practitioner Board.