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End of financial year tips for investors: Depreciation

It’s that time of year again, and we have some great end of financial year tips for property owners wishing to make the most of their investment!

With every tax return, there are claims and deductions you may be entitled to as an investor.

The ATO website lists a number of expenses you are able to claim on your investment property. You may already be aware of most of these, but are you also claiming as much as you’re entitled to through depreciation?

Research from BMT Tax Depreciation indicates that many property investors are failing to maximise the deductions they can claim in this area. Some items you may not have thought to claim depreciation on include:

  • CCTV systems
  • Ceiling fans
  • Door closers
  • Exhaust fans
  • Freestanding bathroom accessories
  • Garbage bins and garbage disposal units
  • Garden sheds
  • Garden watering systems
  • Intercom systems
  • Smoke alarms
  • Solar power generators.

However, there is a caveat when it comes to depreciation. As of November 2017, new legislation was passed rendering owners of second-hand residential properties ineligible to claim depreciation on plant and equipment assets. This affects any investors who purchased existing (not brand-new) residential properties after 9th May, 2017.

Chat with your accountant to get more end of financial year tips and discuss a depreciation schedule for your property. They may recommend enlisting a quantity surveyor, who will ensure you’re categorising your assets correctly and claiming all you can.

Disclaimer: This information is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your situation, and for professional advice, seek out a financial adviser.
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