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Maximise your investment property returns this financial year. Learn how a tax depreciation schedule can boost deductions and improve cash flow.
As the end of the financial year approaches, property investors have a valuable opportunity to reduce tax liability, maximise deductions and improve cash flow. One of the most effective tools is a tax depreciation schedule, which outlines claimable deductions based on the natural wear and tear of a property's structure and contents.
Prepared by a qualified quantity surveyor, the schedule covers both:
The Australian Taxation Office allows these deductions over a 40-year forecast. Investors can choose between prime cost (even claims over time) and diminishing value (higher upfront claims), depending on their strategy.
Engaging a qualified quantity surveyor early—ideally at settlement or when the property is listed for rent—is essential. Some investors even seek estimates before purchasing to better understand potential returns.
Even older or second-hand properties can offer valuable deductions, particularly if renovations were completed by the current or previous owners. Assets removed during renovations (like old carpets or cabinetry) may be eligible for scrapping, allowing their remaining value to be written off in the year of disposal.
Tax Ruling 97/25 confirms that only qualified quantity surveyors can prepare depreciation estimates for tax purposes. A physical site inspection is usually required to capture all eligible items accurately.
Ordering your depreciation schedule before 30 June ensures you can claim it in the current financial year. The cost of the schedule itself is 100% tax-deductible, reducing out-of-pocket expenses while streamlining reporting.
Even if your property was rented for only part of the year, you can still benefit. Quantity surveyors can apply ATO provisions to ensure your partial-year claims are maximised.
Engaging a qualified quantity surveyor early—ideally at settlement or when the property is listed for rent—is essential.
Effective tax planning is about more than compliance—it’s about improving your long-term returns. Whether your property is new, renovated or decades old, a well-prepared depreciation schedule can unlock substantial deductions. For accurate, compliant and nationally available reports, BMT Tax Depreciation offers expert support and guidance.
Request a quote today to make the most of your property this financial year.
Disclaimer: This article is general in nature and does not constitute financial advice. Investors should consult a qualified accountant or tax adviser before making financial decisions.
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