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Don’t wait to depreciate say industry experts

Media release - 2nd May, 2016

  • Depreciation is not a tax time issue – organise a depreciation schedule as soon as an investment property settles to gain immediate tax deductions
  • Use a depreciation schedule as a tool for calculating future costs and minimising them
  • Items valued below $300 can be written off immediately, while assets which have an opening value below $1,000 in the year of acquisition can be added to a low-value pool

Investors who have recently settled on a property purchase should not wait to request a depreciation schedule, according to leading real estate group Raine & Horne.

“Investors often make the mistake of postponing a depreciation schedule until the following financial year,” said Angus Raine, Executive Chairman of Raine & Horne.

“Often investors assume that because they’ve only owned the property for a short period of time, it isn’t worth claiming depreciation deductions that year, but this isn’t true.

“As soon as you settle on a property that you plan to use for investment purposes, seek out the advice of a depreciation specialist such as a quantity surveyor, who can use their knowledge of depreciation legislation to maximise deductions for partial year periods as well.”

The depreciation potential of a property is often a factor in an investor’s decision to acquire a rental property, according to Mr Raine.

“A depreciation estimate obtained prior to purchase can help investors when budgeting for their new investment. This is because the deductions for wear and tear can assist with minimising the costs involved in owning an investment property,” added Mr Raine.

Bradley Beer, Chief Executive Officer of quantity surveying firm BMT Tax Depreciation, says deprecation specialists will utilise the most current methods of calculating the wear and tear on a property, regardless of how long it’s been owned and rented.

“A comprehensive depreciation schedule will incorporate methods such as “immediate write-off” and “low-value pooling” to maximise deductions for a shorter period of ownership,” said Mr Beer.

“Items valued less than $300 can be written off now, while assets which have an opening value less than $1,000 in the year of acquisition can be added to a low-value pool.”

According to BMT’s research, even if an investment property is owned for just 20 days, an investor could potentially claim $3,834 in deductions in the first financial year alone.

“By requesting a depreciation schedule as soon as a property settlement is finalised, investors can recoup some of the costs and provide an immediate boost to their cash flow,” said Mr Beer.


For further media information contact:

Angus Raine, Executive Chairman, Raine & Horne on 0409 920 697

Andrew Harrington, National Communications Manager, Raine & Horne on 02 9258 5400

Bradley Beer, Chief Executive Officer, BMT Tax Depreciation 1300 728 726