Depreciation Can Be Rather Accommodating

MORE AND MORE, Baby-Boomer investors are showing an interest in what is called "Traveller" accommodation.

Owners of income producing properties can generally claim both capital works and plant and equipment deductions. However when claiming for traveller accommodation, it's even more important to seek advice from a Quantity Surveyor.

Continue Reading

You Can Write-off Up to $20,000 Immediately

THESE TYPE OF DEDUCTIONS mean an immediate improvement in your profit.

As part of the May 2015 federal budget, the Australian Government announced that small businesses with an aggregated turnover of under $2 million would be entitled to claim a $20,000 instant asset write-off.

Continue Reading

“U Can’t Touch This”

MC HAMMER'S HIT SONG of the early 90's resonates when thinking about the main reasons people resist investing into their superannuation.

Continue Reading

New Tax Ruling 2015/2

THE AUSTRALIAN TAXATION OFFICE has released a new tax ruling effective from the 1st of July 2015.

Replacing Tax Ruling 2014/4, Tax Ruling 2015/2 outlines the effective lives for all assets when calculating depreciation deductions for plant and equipment items.

Continue Reading

Claiming Depreciation on Fitouts … Some Rules to Note


COMMERCIAL PROPERTY OWNERS and their tenants can both reduce fitout costs for any business by claiming depreciation deductions.

As deductions can be claimed simultaneously by both owners and tenants, a few simple rules must be considered when a Quantity Surveyor prepares a tax depreciation schedule for a commercial property:

Commercial tenants are able to claim depreciation for any fitout they add once their lease starts. At the same time, commercial property owners can claim deductions for any of the plant and equipment items originally found in the property.

If a tenant’s lease demands that the property must be returned to its original condition, the tenant can write-off the remaining depreciable value of removed assets in the financial year of their removal.

If a tenant vacates a building and does not remove the fitout, the owner may still be able to claim the remaining depreciation for these items.

Small business owners should also be aware of the recent changes outlined in the federal budget and understand how these changes will affect their claims.

The following rules apply

      1. If a business has an aggregated turnover beneath $2 million per year, items added after 7:30pm on budget night (12th of May 2015) worth $20,000 or less will entitle their owner to an immediate write-off in the year of their purchase. This rule will apply until the 30th of June 2017.
      2. For small business owners, assets which cost $1,000 or less installed between the 1st of January 2015 and the 12th of May can still be written off immediately. Assets above the $1,000 threshold purchased for small businesses between these dates can be added to a low-value pool and depreciated at an increased rate of 15 per cent in the first year and 30 per cent for each year after.
      3. Assets purchased between the 1st of July 2012 and the 31st of December 2013 for small businesses which cost $6,500 or less are still eligible for an immediate write-off under previous depreciation legislation rules. Most other assets purchased during this time frame can still be pooled at a rate of 30 per cent.
      4. For businesses with an aggregated turnover of over $2 million, although the measures implemented during the May 2015 federal budget will not apply, there are still substantial deductions available. Items worth $300 or less can still be applied as an immediate write-off and assets which cost $1,000 or less are still eligible to be added to a low-value pool.

Assets not within these thresholds will continue to depreciate based on their individual effective life, as determined?by the ATO.

Bottom Line: Commercial property owners and tenants who would like further information about how any of the recent federal budget rules will affect their depreciation claim can seek expert advice from a specialist Quantity Surveyor such as BMT Tax Depreciation.

BMT also provide depreciation schedules to help outline all of the deductions available for both commercial property owners and their tenants to lodge their claim when completing their annual income tax return.


Be Fully Aware of Your Commercial Property Deductions

WITH THE RECENT federal government announcement that small business owners are entitled to claim an immediate write-off for items worth up to $20,000, many commercial property owners may be wondering about what deductions they are entitled to. [Read more…]

Maximise The Cash from Your Rural Property


MANY COMMERCIAL PROPERTY INVESTORS may also own a rural property. And yet, are often unaware of the full extent of depreciation benefits that they can gain. [Read more…]

ATO Agrees Estimates Are Acceptable


FROM TIME TO TIME, the Tax Office will provide Rulings on various aspects — designed to assist practitioners and their clients, and generally simplify proceedings. [Read more…]

Tax Deductions for Medicos

JUST WHAT the Doctor ordered — a healthy deduction!

Did you know that Doctors can save thousands of dollars each year by claiming property depreciation? Let’s provide a quick recap on things.

What is depreciation?

As a building gets older and items within it wear out, they consequently depreciate in value. [Read more…]

Deductions to Get Your Motor Running


COMMERCIAL PROPERTY owners often require vehicles for use in the day-to-day operation of their business. And like other assets contained within a commercial property, vehicles can be depreciated and claimed as a deductible expense.

The Australian Taxation Office (ATO) lists most deductions available for motor vehicles under Table B of the 2014/4 Tax Ruling. [Read more…]

Your 4 Resolutions as a Commercial Property Investor


AS THE NEW YEAR BEGINS, many commercial property owners might be formulating 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.

Many commercial property owners still do not maximise the depreciation deductions available from their Commercial properties. [Read more…]