How to Improve Your Return From Industrial Property


DID YOU KNOW that you can claim quite significant depreciation deductions for an Industrial property? Because, legislation set down by the Australian Taxation Office (ATO) allows the owners of any income producing property to claim depreciation.

What are Depreciation Deductions?

Depreciation deductions are intended to take into account the decline in value of a building. They apply to both the structure of the building (via a capital works deduction) and to any plant and equipment assets contained within the property.

As an investor, your depreciation benefits will vary depending on the type of building, its age, its use, its size and its fit out.

After their lease starts, your tenant is also entitled to claim depreciation for any fit out of a commercial or industrial building that they install.

For these reasons — it is very important to consult with an expert who knows what deductions are available.

How Do You Claim Depreciation?

For buildings of an industrial or a commercial nature, a Quantity Surveyor who specialises in depreciation will need to perform a site inspection of the property.

They will report the depreciation deductions that the owner or the tenants of the property can claim.

A Quantity Surveyor will take measurements, as well as photographs of assets, and note any critical information about the assets and structure of the property.

This information is then used to put together a tax depreciation schedule for the owner, the tenants. Alternatively, both parties and their Accountant/s can process their claim, when they complete their annual income tax assessment.

Real Deductions, Real Returns — Making a Real Difference for You

The table below provides an estimate of the depreciation deductions available for a variety of industrial property types.


BOTTOM LINE: Depreciation deductions can make a huge difference to the cash flow of your investment property.

If you’d like any more information you can visit BMT Tax Depreciation’s property investors page.


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