Property Depreciation Explained

Everything you need to know about property depreciation explained in simple and easy-to-understand terms.

Property depreciation is all about saving money. It’s a legitimate and straightforward way of reducing your taxable income. Here are 3 great reasons for claiming depreciation on your investment properties:

You pay less tax.

You save money.

You improve your cashflow.

Depreciation is about claiming for the wear and tear in your investment property over time. It recognises the building and its internal furnishings and fittings will become worn over time and eventually need to be replaced.

There Are Two Types Of Allowances Available

Plant and Equipment

Refers to items within the building, like ovens, air conditioners, carpets and blinds.

Building Allowance

Constructions costs of the building itself, such as concrete and brickwork.

How Much Can I Claim?

How much depreciation you can claim on your property really depends on many different factors, such as: the location, age of the property, etc.

Property investors should avoid estimating their own deductions as you risk submitting an incomplete depreciation report which will cost you a lot in missed deductions. You might also face an Australian Taxation Office (ATO) audit if the report fails to meet their standards.

IMPORTANT: If you’re ready to maximize your tax return and put more money back into your pocket, then click here to find and download the depreciation report for your property now.

Your Questions About Depreciation Answered

How does a depreciation report help me?

A depreciation report enables you to claim the depreciation on your investment property against your personal income tax. This reduces the cost of owning the property, increases your cash flow, and improves the return on your investment.

How will the recent changes to the Budget affect my ability to claim depreciation on my property?

If you purchased a residential property after May 9, 2017, you’re unable to claim the depreciation of any “previously used” plant and equipment items in the property. The good news is that you can still claim the Building Allowance as normal (i.e. the structure) and you can offset the plant and equipment depreciation against your Capital Gains Tax, when you cease to use the asset, through our CGT Saver Report.

Why should I trust NDR and Washington Brown?

Washington Brown has 40 years experience in the quantity surveying industry and has prepared over 220,500 reports, all of which have been accepted by the ATO. Due to our involvement in so many projects, we have the costs on file of most apartment buildings in Australia, which is why we’ve created the NDR. So take advantage of all this data!

Do you do commercial properties as well?

Washington Brown has a specialised commercial property depreciation team that can prepare reports for any property type from warehouses and industrial buildings, to office suites and retail spaces. Contact the experts at Washington Brown to find out more.

How much does a depreciation report cost?

The cost of the report will vary in price due to a range of factors, including location, property type, if an inspection is required, what you would like included, etc. To see our pricing for your exact property, search your address below.

Do you offer a money back guarantee?

We do! If you can’t claim more than twice the fee of your depreciation schedule in the 12 months, we’ll do it for free. Not only that, if it takes more than 5 days for a Building Allowance only report, you’ll get it free too.

Got a question about depreciation we haven’t answered?

Click here to talk with us today and we’ll be happy to answer your questions in full.