Tax Depreciation Schedules and EOFY | Koste Chartered Quantity Surveyors

Tax Depreciation Schedules, What you NEED to know for EOFY


Can you believe it’s already the month of May? We’re almost halfway through the year, and we all know what that means — TAX time! Don’t let the end of the financial year pass by without ensuring you have your tax depreciation schedule ready to go for when you complete your tax return.

As a property investor, you are probably already familiar with the substantial financial benefits of a tax depreciation schedule for your investment properties.

Not familiar with Tax Depreciation Schedules? I’ll quickly explain the benefits for you now:

A depreciation schedule is a report carefully prepared by a certified quantity surveyor that will detail the value of your building, structure, and fixtures over a period of time. The depreciation schedule is used at the time of completing your tax return to reduce your taxable income and enhance your cash flow. A depreciation schedule is a once-off cost and will last for 40 years, allowing you to use this schedule each financial year, where you will be able to maximise ALL of the benefits available to you under Australian taxation law.

Ideally, you will order your Tax Depreciation Schedule before the 30th of June so you can claim tax deductions for the past financial year and enjoy your maximised cash flow immediately!

What Is Included in Your Schedule?

Your schedule will be split into 2 classifications: Capital Works and Plants & Equipment.

Capital Works include the original cost of the property, extensions or renovations, and structures.

Plants & Equipment are nonpermanent removable assets like; appliances, carpets, flooring.

Your Tax Depreciation schedule will summarise all of this information into one report identifying the value of each part of your property and how much it has depreciated. This report is then available to use at tax time to complete your claim.

We highly recommend your tax depreciation schedule is completed by a professional that specialises in Tax Depreciation Schedules, like Koste Chartered Quantity Surveyors.

How do you benefit from a Tax Depreciation Schedule?

As an investor, you can claim back between 10 and 40 percent of an item’s value. Over time items and properties wear down and decline in value and the Australian Tax Office allows property owners to claim this fall in value as a Tax Deduction. Your Tax Depreciation schedule will have all of this information listed in an easy format so your accountant can claim it on your tax return. A Tax Depreciation Schedule can improve your cash flow by thousands of dollars and will reduce the amount of tax you have to pay on a property.

New to property investing?

If you haven’t realized the potential savings you can achieve from a Tax Depreciation Schedule and you have only just recently purchased your investment property, the ATO will allow you to adjust your tax return for up to 2 financial years.

Don’t Delay!

Ideally, you will want to have your schedule completed by the 30th of June. We do highly recommend you engage the services of a Quantity Surveyor sooner rather than later to avoid the disappointment of missing out on making any claims for this current tax year!

Koste can help!

If you have recently purchased an investment property or even if you have been a long-time investor, give Koste a call to discuss how we can help you reduce your taxable income and improve your cash flow.

To order your report or talk to one of your professional advisors, give Koste Chartered Quantity Surveyors a call today.