What is Tax Depreciation?

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Claiming property depreciation on any income producing property can significantly increase on investor's cash flow. Owners of investment properties miss out on thousands of dollars by not claiming property depreciation.

Request a quote or find out the likely deductions available on a current or proposed investment property today.

Tax depreciation helps investment property owners gain more

Often investors are unaware of the significant benefits that come from claiming depreciation on their investment property. The Australian Taxation Office (ATO) allows property owners to claim depreciation deductions on the gradual wear and tear of structural items and for the plant and equipment assets contained within any income producing property.

Depreciation for income producing properties is claimable under two major components:

Capital works deduction (division 43) and plant and equipment (division 40)

Capital works deduction: Is the deduction available for the building structure and the items within it that are deemed irremovable.

What is deductible under capital allowance?
  • Fences and retaining walls
  • Sinks, basins, baths and toilet bowls
  • Driveways
  • Clothes lines
  • Bricks
  • Mortar
  • Roof
  • Car parks
  • Concrete

Plant and equipment assets: Includes assets which can be easily removed from the property. The asset’s condition, quality and effective life set by the ATO all determine the deductions available.

What is deductible under plant and equipment?
  • Hot water systems
  • Heaters
  • Solar panels
  • Air-conditioning units
  • Blinds and curtains
  • Light shades
  • Carpet and flooring
  • Desks
  • Security systems

What is property tax depreciation?

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BMT Tax Depreciation's Chief Executive Officer Bradley Beer provides an overview of what property depreciation is and outlines the tax benefits available for owners of investment properties to maximise their depreciation claim.

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