Boost your property investment returns with our expert tax depreciation schedules. We help you claim property wear and tear correctly, ensuring you capture every ATO-approved deduction at tax time.
What is tax depreciation?
Tax depreciation is a tax deduction claimed for the natural wear and tear of an income-producing building and its assets over time. It is generally the second biggest tax deduction for property investors, after interest.
Why should I claim?
Claiming tax depreciation reduces your taxable income, meaning you pay less tax. You may be eligible for thousands of dollars in depreciation deductions each year.
Who can claim?
Tax depreciation deductions are available for both residential investment properties and commercial buildings. Most properties, new and old, have depreciation available.
What can you claim?
You don’t need to spend money to claim tax depreciation. Tax depreciation deductions are split into two categories:
Division 43: Capital works deductions (link)
Division 40: Plant and equipment depreciation (link)
A tax depreciation schedule is essential for every property investor as it helps to:
Our clients save on average almost $9,000 in the first full financial year deductions
A Depreciation Schedule will help reduce the taxable Income from your investment property
You can adjust previous tax returns and claim back missed dollars
If we don’t find double our fee in deductions in the first full financial year our services will be FREE!
⦁ Pay Less tax every year
An investment property Tax Depreciation Schedule reduces your taxable income.
⦁ We find all possible deduction
Our clients an average claim almost $9,000 in first full financial year deductions
⦁ 40 years of deductions
Your schedule lasts up to 40 years
⦁ Our fee is deductible
Our one-off fee is 100% tax deductible.
⦁ Our fee is deductible
Our one-off fee is 100% tax deductible.
⦁ Claim missed deductions
Your accountant will be able to adjust previous tax returns.
⦁ OUR GUARANTEE
If we don’t find 2x our fee in deductions in the first full financial year we won’t charge for our services!!
Capital works deductions (division 43) refer to the building’s structure and items that are permanently fixed to the property such as Built-in kitchen cupboards Doors, locks and door handles Clothes lines Bricks, mortar, walls, flooring and wiring Driveways Fences and retaining walls Sinks, basins, baths and toilet bowls
Capital works typically make up between 85-90% of the total claim.
At a rate of 2.5 per cent per year for up to 40 years where construction commenced after 15 September 1987. If your property was constructed before these dates, it’s still important to get in touch with us as often these buildings have undergone some form of renovation which can result in capital works deductions for the owner.
There are different rates of depreciation available for different properties based on their type, industry and construction commencement date.
Here are some examples of typical depreciable items you could claim under a capital works deduction
Residential property:
Commercial property:
Plant and equipment assets (division 40) are items which are easily removable from the property, like carpet and blinds. These assets have a limited effective life as set out by the ATO and can generally be depreciated over time. Investors can claim depreciation deductions for more than 6,000 different ATO recognised plant and equipment assets.
There are some restrictions to claiming depreciation on previously used plant and equipment found in second-hand residential properties as legislation changed in May 2017.
(Second hand properties exchanged after 9th May 2017 can claim new plant and equipment assets added to the property however, they are unable to claim previously used plant and equipment assets)
Here are some examples of typical depreciable items you could claim under a plant and equipment deduction
Residential property:
Commercial property:
A site inspection is crucial when we undertake a depreciation schedule report.
⦁ Is quick to complete
⦁ Records all depreciable assets
⦁ Ensures it is Tax Office compliant
Engaging us to complete a tax depreciation schedule for your investment property couldn’t be easier:
It is a common myth that older properties will attract no depreciation claim. However, both new and old properties will hold some depreciation benefits.
A depreciation schedule is the best way to ensure the biggest tax refund possible. A LBI Tax Depreciation Schedule covers all deductions available over the lifetime of a property.
We work with your accountant to ensure that your depreciation claim for your investment property is maximised each financial year. The ATO states in taxation ruling 97/25 that quantity surveyors are one of the only recognised professions with the appropriate construction costing skills to estimate construction costs for depreciation purposes. Other professions include builders, architects, and engineers.
Although we are not quantity surveyors, our skills in the building industry and our partnerships with highly skilled surveyors across the country mean we can provide a superior service to our clients at a very competitive price.
Yes. Anything in the property that is part of a previous renovation will be estimated by our quantity surveyors and depreciated accordingly, even if the work was completed by a previous owner. This includes items that are not obvious, for example new plumbing, water proofing or electrical wiring
Yes, we inspect properties to ensure all depreciable assets are identified and included, maximising the available depreciation deductions. Conducting an on-site inspection allows us to prepare schedules that are fully compliant with Australian Taxation Office requirements.
A Tax Depreciation Schedule lasts for forty years. The Australian Taxation Office has set a maximum effective life of forty years for any building eligible for depreciation claims, calculated from the construction completion date. This means a newly constructed building can claim deductions over the full forty-year period, while an older property can claim deductions for the remaining duration within that forty-year window.
To get started, you’ll typically need to provide:
Each property is unique, so we may need some additional information from you. However, if you request a quote, one of our staff members will reach out to discuss your specific depreciation needs and ensure we have all the necessary details
You only need one tax depreciation schedule per investment property. It’s recommended to get your schedule soon after settlement to ensure claiming maximum deductions right away.
We will conduct the necessary searches required to accurately determine the age of your building. These can include historical council searches regarding lodged development applications as well as occupancy certificates and certified final inspections. We look at things on site, too, such as materials and age of equipment.
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A property purchase is time-sensitive, so we strive to schedule your inspection for the next day after you call. Furthermore, our inspectors aim to deliver your report within the same day of completing the inspection.
Our advanced reporting software makes it simple to read and navigate reports, featuring high-quality photos and videos. This ensures you receive clear, detailed information about your property inspection. Experience the ease and clarity of our innovative reporting system.
