TAX DEPRECIATION
Depreciation compensates the taxpayer who incur capital expenditure on depreciating assets for the decline in value of those assets over their effective life.
CAPITAL WORKS (DIV 43)
Capital works deductions are a type of income tax deduction that property investors can claim for the depreciation or wear and tear of a building’s structure and permanently fixed items. These deductions can include any structural improvements that may have been made during a renovation within relevant dates, and they can still be claimed even if the renovations were done by a previous property owner.
The legislation introduced on 9 May 2017 did not affect capital works deductions, which means property investors can still claim them for all properties. Generally, these deductions make up a significant portion of a property’s total depreciation claim, ranging from 85% to 90%. As such, it is essential for property investors to ensure they claim these deductions correctly to maximize their tax benefits.
PLANT & EQUIPMENT (DIV 40)
Tax legislation identifies plant and equipment assets as items that will generally decline in value or depreciate over time due to their usage. The depreciation rates for plant and equipment assets are determined based on their effective life, which is regularly updated by the tax commissioner through tax rulings.
The rates and effective lives of ATO specified plant and equipment assets under division 40 are unique to each asset and industry. As plant and equipment assets are more likely to wear out quicker than the building, they require replacement more frequently. The ATO acknowledges this and allows for specific depreciation rates on these assets.
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Residential Government Legislation Changes (9th May 2017)
In 2017, amendments were made to the depreciation legislation that disallowed the claiming of depreciation for second-hand plant and equipment assets.
Despite this change, owners of residential properties are still able to claim for new plant and equipment assets that are added to the property, such as ovens or dishwashers, as well as the full capital works deductions that typically constitute 85-90% of the total claim.
At eDepreciation, we ensure that property owners maximize their depreciation deductions for both plant and equipment and capital works. Our schedule covers all available deductions over the lifetime of a property, and is 100% tax deductible. We provide thorough assessment of each property to ensure that the claim is substantial.
Claiming Tax
Purpose of Depreciation
To compensate tax payers who incur capital expenditure on depreciating assets (plant and equipment) for the decline in value of those assets over their effective life.
Maximise Deduction
Depreciation Reports
Statistics show that fewer than 40% investors are claiming entitlements across Australia. Tax depreciation report would help investors to pay less tax from their investment properties.
Claiming Tax
Purpose of Depreciation
To compensate tax payers who incur capital expenditure on depreciating assets (plant and equipment) for the decline in value of those assets over their effective life.
What Can You Claim From Your Investment Properties?
Related Fees
Management or settlement fees that you spent on your investment properties, e.g. legal fees & property agent fees
Maintenance Expenses
Building maintenance expenses such as pest control, cleaning fees and body corporate fees.
Insurance Payment
Insurance that is related to the investment properties, such as building insurance and landlord insurance.
Others
Where necessary a site survey will be carried out by a qualified surveyor. If no site survey is required you will be offered a discounted fee.
Your Investment
- 24/7 Technical Support
- Online Application
- Affordable Price
- Maximum Deductions
- High Quality Reports
- ATO Compliant
- Fast Turnaround Time
- Online Secure Payment
- Diminishing Value & Prime Cost Methods
- Low Value Pooling
- Immediate Writeoffs
- 40 Year Summary
- Report Updates
Starter Package
You Know Your Property
$220
Our starter package offers a self-assess option for knowledgeable property owners. Share property details, and our expert surveyors will review your report for ATO compliance.
- Self Assess Survey
- Provide Supporting Information
- Get Income Tax Savings
- 2 x Day Turnaround (Business Day)
- 6 Month Report Updates
- Quantity Surveyor Reviewed
- Price excludes GST
Signature Package
I Need Some Help
$395
Our signature package is a hassle-free option for busy investors seeking maximum deductions. Our expert surveyors prepare an ATO-compliant tax depreciation schedule through a desktop survey.
- Quantity Surveyor Prepared
- Provide Supporting Information
- Get Income Tax Savings
- 3 x Day Turnaround (Business Day)
- 12 Month Report Updates
- Quantity Surveyor Reviewed
- Price exclude GST
40 Year Summary
We provide an extensive 40-year summary that uses both prime cost and diminishing value methods, as well as Low-Value Pooling and Immediate Write-offs.
Maximum Deductions
By staying up-to-date with the yearly changes to ATO Tax legislation, we ensure our clients receive maximum benefit and returns.
Quality Assurance
Our reports undergo a rigorous quality check to ensure maximum deductions and ATO compliance before being signed off.
Fast Turn Around
Our highly qualified Quantity Surveyors meticulously review and prepare your report to ensure maximum deductions, usually in just 2-3 business days.
Detailed Report
We're dedicated to helping you save thousands on tax deductions on your investment property. Our reports consider every aspect to produce the highest possible deductions.
FREE Reports upgrade
Our packages include free updates to your tax depreciation reports, reflecting our commitment to building long-lasting relationships with our satisfied clients.
Ready to start saving?
Get your tax depreciation report faster and easier with eDepreciation! You can order your report anytime and anywhere you want. What are you waiting for? Save thousands of dollars with our tax depreciation report from just $220!
