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Claim Depreciation on an investment property


Claim Depreciation on an investment property

Over the next three months Australians who own an investment property will be visiting their accountant to complete their tax return. Of these investors, many are unaware of what they can claim when it comes to property depreciation. According to Bradley Beer of BMT Tax Depreciation, claiming depreciation is the key to increasing cash flow on a residential investment property.

“Research shows that 80% of property investors are failing to take advantage of property depreciation and are missing out on thousands of dollars in their pockets,” said Bradley Beer, Director of BMT Tax Depreciation.

“As a building gets older, items wear out – they depreciate. The Australian Tax Office allows property owners to claim this depreciation as a deduction. Depreciation can be claimed by any property owner who obtains income from their property,” said Bradley.

Property owners often make the assumption their property must be new in order to claim depreciation deductions. Despite this myth, property owners can claim irrespective of the property age as deductions relate not just to the building's structure, but also on the fixtures and fittings within.

Fixtures and fittings will attract a healthy deduction regardless of age. These include items such as carpets, stoves, blinds, hot water systems, light shades and heaters.

It is recommended investment property owners consult a specialist Quantity Surveyor to prepare a depreciation report before lodging their tax return. Quantity Surveyors are one of the few professionals recognised to have the appropriate construction costing skills to estimate building costs for depreciation. Quantity Surveyors are qualified under the tax ruling 97/25. They also gain access to the latest information through their affiliations with industry regulating bodies. BMT Tax Depreciation is accredited with the Australian Institute of Quantity Surveyors (AIQS), The Royal Institute of Chartered Surveyors (RICS) and The Auctioneers & Valuers Association of Australia (AVAA).

Quantity Surveyors also work regularly with property managers and accountants to maximise deductions available to property investors. “BMT Tax Depreciation complete reports for over 10,000 accountants each year. Our reports show an average of $5,000 to $10,000 as a first full year deduction for residential properties,” said Bradley.

BMT Tax Depreciation also guarantee to double their fee worth in deductions in the first full financial year or will not charge for their services.

Property owners who would like a free over the phone assessment of available deductions they can claim should contact BMT Tax Depreciation on 1300 728 726.


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Claim Depreciation on an investment property