Did you know that you can back claim your property’s tax depreciation if you missed them out previously?
The public has little to no idea they could back claim what they missed out on in their previous years’ tax returns. It is in fact very common for property investors to miss out on claiming their tax deductions, particularly their properties’ tax depreciation.
As a Quantity Surveyor Specialized in this area, we get a lot of questions asking whether they should get a tax depreciation schedule though several years of tax deductions have been missed out for their properties and how far can they back claim their missed-out deductions.
Now, let’s first explain what back claiming deductions means. It is in fact the process of submitting a tax return amendment to include additional tax deductions that were missed out and not claimed in your original submitted tax return.
Below table shows various entities and the time limit set by the law for lodging tax returns amendments:
| Taxable Entity | Time Limit for Back Claiming Deductions |
| Individuals | 2 years from the end of the financial year in which the expenses were incurred. |
| Small businesses | 2 years from the end of the financial year in which the expenses were incurred. |
| Medium businesses | 2 years for income years starting on or after 1 July 2021 |
| Businesses other than SMEs | 4 years from the end of the financial year in which the expenses were incurred. |
| Trusts (except for Small or Medium business trusts) | 4 years from the end of the financial year in which the expenses were incurred. |
| Superannuation Funds | 2 years from the end of the financial year in which the expenses were incurred. |
Additional to note in detail:
- Time limit period begins from the day ATO issues you the notice of assessment of the income year in question and when the notice wasn’t issued, the date of relevant return lodged would be applied.
- During the amendment period, you may submit more than one request.
- If you have missed the time limit period, you may lodge an objection which is in fact a request for an extension of time to make your amendments.
For objection of decisions and time limits, you may refer below link:
Decisions you can object to and time limits | Australian Taxation Office (ato.gov.au)
Lastly, you should consult your tax accountant to request an income tax return amendment, noting each financial year amendment needs to be submitted separately.
Otherwise, if you have opted to do it by yourself, you may refer to below ATO link for further details on how to lodge your tax returns amendment.
Request an amendment to a business or super tax return | Australian Taxation Office (ato.gov.au)
