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…]

Could This Bottle Be Hidden in Your Cellar?



IN NOVEMBER 2010, a bottle of Chateau Cheval Blanc sold at auction for over $335,000.

However, many winemakers and vineyard owners are currently unaware that they could be sitting on a similar amount of cash in the form of property depreciation.

Like fine wine, great wineries also age and this process can be just as lucrative as it is for a good vintage.

By claiming depreciation deductions due to the gradual wear and tear of the building structure and the plant and equipment assets within a winery, owners can receive substantial returns from the Australian Taxation Office (ATO).

Case Study

The following table provides an example of the depreciation deductions one vineyard owner could claim for a winery established in 1990:

As the table shows, the owner was able to claim $89,190 in depreciation deductions in the first full financial year alone.

Over the life of the property (forty years), depreciation deductions amounted to a whopping $1,284,240.

To ensure that depreciation deductions are maximised, winery owners are encouraged to enlist the services of a specialist Quantity Surveyor to prepare a tax depreciation schedule.

The tax depreciation schedule will outline all of the deductions available for capital works (the structural elements).

The schedule will also show the plant and equipment items contained for the winery owners Accountant to lodge their claim with the ATO at tax time.

Accounting for Assets

During the process, a site inspection will be performed to ensure all of the plant and equipment assets found in the property are accounted for.

Some of the common plant and equipment found in wineries which can be claimed include oak barrels, fences, grape bins, presses, barrel racks, barrel washers, signage, carpet and corkers.

Bottom Line: Winery owners who would like more information about the depreciation deductions they are entitled to should contact one of the expert staff at BMT Tax Depreciation.


What About 3 Handy Apps?



SMART COMMERCIAL PROPERTY OWNERS, commercial property tenants and business owners want to improve their cash flow.

Claiming depreciation can reduce the tax paid for any commercial property at tax time.

BMT Tax Depreciation provide three valuable apps that every business or commercial property owner should be aware of. Let’s take a look at how these apps can help you. [Read more…]

Don’t Miss The Deductions Right in Front of You!


OPTOMETRISTS SPEND ALL DAY looking at their client’s eyes in order to assist them with their sight.

It’s therefore understandable that a busy schedule might result in unforeseen deductions for the depreciable items contained in their business. [Read more…]

Hotel & Tavern Owners Can Tap into Depreciation Deductions Too


WE’VE ALL HEARD THE LINE, “A man walks into a bar …” and waited for the pun at the end of the sentence. However, when a tax depreciation specialist walks into a bar it’s no laughing matter as there is much more to uncover.

Many pub, hotel and tavern operators are losing thousands annually by failing to have a tax depreciation schedule prepared for their property. [Read more…]

There May Be Cash Hidden Within Your Property

Hidden Cash

AS YOU ARE probably aware, property depreciation is mostly claimed by the owner of an income-producing property. And it’s for this reason, that many commercial tenants often miss out on the hidden cash available to them through depreciation.

Commercial tenants can claim depreciation deductions based on any fit-out or plant and equipment assets that they add to the property. [Read more…]

How Will Tax Ruling 2014/4 Affect Your Claims?


THE AUSTRALIAN Taxation Office (ATO) has released a new tax ruling, which is effective from the 1st of July 2014.

Replacing Tax Ruling 2013/4, Tax Ruling 2014/4 explains the methods to be used when determining the effective lives of depreciating assets.

The tax ruling in effect at the time an asset is acquired determines the effective life of that asset. For this reason, any changes the ATO have made to effective lives of assets in Tax Ruling 2014/4 will only affect assets purchased and installed for use after the 1st of July 2014. [Read more…]

Prime Cost or Diminishing Value … for Commercial Property?

Senior man being puzzled with tax documents

THE AUSTRALIAN Taxation Office (ATO) allows investors to choose between two alternative methods of claiming depreciation on plant and equipment assets. The diminishing value and the prime cost methods of depreciation.

When you make a depreciation claim, you can only choose one of these methods. It is important for you to understand how your choice will affect your investment returns. [Read more…]