It’s time to unlock the cash flow to your investment property and claim more at tax time! Owners of investment properties are eligible to claim tax deductions for their properties and most investors are aware of the deductions they are entitled to. However, many are unaware of property depreciation which means they could be missing out on hundreds or even thousands in returns!

To help ensure you maximise your deductions, here is everything you need to know on Tax Depreciation from BMT.


What is Tax Depreciation?

As a property gets older and items within it wear out and depreciate in value. Legislation allows owners of income producing properties to claim on this wear and tear and it is called Tax Depreciation. Unlike other expenses involved in holding a property, such as repairs and maintenance, an investor does not need to spend any money to be eligible to claim it. For this reason, depreciation is often described as a non-cash deduction.


Types of depreciation deductions available

The capital works (Division 43) allowance refers to what an investor can claim for the wear and tear that occurs to the structure of the property. This includes any structural improvements that may have been made during a renovation. Residential property investors can claim capital works deductions at a rate of 2.5 per cent per year for a total of forty years.

Examples of items which are considered capital works are external bricks, roofs, driveways, fences, doors, clothes line as well as internal items such as built in kitchen cupboards, sinks, bath tubs & toilets.

The second type of depreciation deductions available are plant & equipment (Division 40) assets. These items are considered to be easily removed from the property. Some items included are hot water systems, solar panels, air conditioning units, blinds, swimming pool filtration, carpet & security systems.

For a full list of items deductible head here.



How can I claim Tax Depreciation?

In order to claim depreciation and capital works deductions property investors need a comprehensive capital allowances and tax depreciation report or schedule. We recommend a BMT Tax Depreciation Schedule which we can organise for you. When completed, a tax depreciation schedule outlines the deductions available and is used each financial year when preparing tax returns. Schedules are prepared for the forty year life of your property or until the deductions run out.


Call us today to organise your BMT Tax Depreciation Schedule!


Information from BMT Tax Depreciation 

BMT Tax Depreciation

1300 728 726 |

The largest and most successful tax depreciation company in Australia- the best choice to complete the tax depreciation schedule for your residential or commercial property.

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