Depreciation: The Rules May Change … But Your Goals Remain The Same


THOSE OF YOU considering the purchase of an investment property often ask whether a commercial or a residential property will provide them with more deductions in the form of depreciation.

As you will appreciate, there are many important factors an investor needs to be aware of – when making your choice between these two investment options. [Read more…]

The 9 Experts You Need on Your Investment Team


AS YOU HAVE gathered, BMT’s main focus is helping investors claim maximum property depreciation deductions. Yet as Chris Lang recommends, we also recognise the importance for property investors to have their own team of trusted experts in place. [Read more…]

New Depreciation Legislation for Australian Property Investors


IN ONE OF THE most dramatic changes to property depreciation legislation in more than 15 years, Parliament has passed the Treasury Laws Amendment (Housing Tax Integrity) Bill 2017 as at Wednesday 15th November 2017, with the Bill now legislation.

The new legislation means owners of second-hand residential properties (where contracts exchanged after 7:30pm on the 9th of May 2017) will be ineligible to claim depreciation on plant and equipment assets, such as air conditioning units, solar panels or carpet.

The good news is that there are still thousands of dollars to be claimed by Australian property investors, as there has been no change to capital works deductions – a claim available for the structure of a building and fixed assets such as doors, basins, windows or retaining walls.

These deductions typically make up between 85% to 90% of an investor’s total claimable amount.

In the Past …

Previously, existing depreciation legislation will be “grandfathered” – which means investors who already made a purchase prior to this date can continue to claim depreciation deductions as per before.

Investors who purchase brand new residential properties and commercial owners or tenants, who use their property for the purposes of carrying on a business, are also unaffected.

Owners of second-hand properties who exchanged after 7:30pm on the 9th of May 2017 will still be able to claim depreciation for plant and equipment assets they purchase and directly incur an expense on.

To read more about the new depreciation legislation and how this applies to a range of property investment scenarios, download our comprehensive white paper document Essential facts: 2017 Budget changes and property depreciation.

Bottom Line: It’s more important than ever to work with a specialist Quantity Surveyor to ensure that all deductions are identified and claimed correctly under the new legislation.

Each and every BMT Tax Depreciation Schedule will be tailored to suit an individual’s property investment scenario, ensuring that all deductions are maximised.

Why Shopping Centre Owners Should Try on Depreciation for Size

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THE FACE OF RETAIL has changed dramatically in recent years.

With the rise of online shopping, the arrival of international brands, climbing rents and challenging economic conditions … some shopping centres (and retail landlords) have started to feel the pinch as these factors affect their bottom line. [Read more…]

Is There an Industrial Property Revolution?

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IF YOU HAVE ever bought something online, you probably haven’t put much thought into the detailed process from purchase to delivery.

With the rise of online retailers such as Amazon, this process has become very systematic and sophisticated using a mix of advanced technology and human labour to pick, pack and send orders.

This process usually takes place within an industrial warehouse. [Read more…]

Are Childcare Centres the Next Big Thing for Investors?

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THE GROWING DEMAND for childcare centres is no longer just from parents jostling to get their kids on waiting lists.

It’s increasingly also coming from investors looking to get a slice of this burgeoning real estate market and to take advantage of the significant tax deductions available for this type of property. [Read more…]

Removing Budget Confusion Over Claiming Depreciation

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THE 2017 FEDERAL BUDGET (handed down by Treasurer Scott Morrison on Tuesday 9 May) includes proposed changes, which will affect residential property investors Australia-wide.

At this stage, our understanding is that depreciation claims relating to commercial properties won’t be affected. This is good news for anyone who owns a commercial property. [Read more…]

Depreciation Can Be a Cash Cow for Farmers

MANY COMMERCIAL PROPERTY investors will also own a rural property. However, they are often not taking advantage of the same depreciation benefits claimed for their investment properties. Did you know that …

You could claim $149,187 from your rural property?

[Read more…]

Common Property Deductions for Commercial Strata-title Owners

AN ESSENTIAL PART of ensuring commercial property owners claim the maximum depreciation for their property is taking advantage of any common property deductions which may apply.

Owners of all types of commercial property owners are entitled to claim deductions for the wear and tear that occurs to the building and its fixtures. [Read more…]

6 Tips for Commercial Property Owners in 2017

AS WE ENTER February, many investors are now implementing their annual New Year’s resolutions.

Commercial property owners often think about the ways they can reduce the costs of owning their property and running their business. However, when they do so, the deductions they can claim via depreciation are not always top of their list. [Read more…]

Kick-start Your Business by Claiming Depreciation

starting-a-business

MOST PROPERTY investors also run their own business. And as such, you realise there are significant costs involved in starting any new venture.

There are expenses for equipment, stock, insurance, staff overheads and (if you don’t own the building) funds required to cover rent.

Whether you own or rent the building, there may also be costs involved in fitting out the new space to make it appropriate to open the doors for business. [Read more…]