Claiming Property Deduction

By Bradley Beer on 13 Apr 2013
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As tax time approaches, property owners should make sure they understand which deductions they are entitled to claim – and which they are not. 

Owners of income-producing properties can claim depreciation deductions related to the building’s structure via the capital works allowance. As a general rule, homes built after 18th July 1985 and commercial properties built after 20th July 1982 are eligible for this. Wear and tear on plant and equipment items and fixtures and fittings within a building, such as hot water systems, carpets and blinds, can also be claimed.

Unacceptable claims include those against portions of land used for both investing and private purposes, claims against expenses relating to the private use of holiday homes, and claims against properties that are genuinely unavailable for rent. Owners can also attract the tax man’s ire if they claim on a rental inspection conducted while they were holidaying in the area.

Generally, newer properties with newer fixtures will attract more depreciation deductions simply because they have not decreased in value as much as older properties. However, it is worth enquiring about the possible depreciation deductions for any investment property. To maximise their returns, property investors should engage a specialised quantity surveyor to complete a depreciation report. The report is a one-off cost which lasts the life of the property.

About the Author

Bradley Beer (B. Con. Mgt, AAIQS, MRICS) is the Managing Director of BMT Tax Depreciation. A depreciation expert with over sixteen years experience in property depreciation and the construction industry, Bradley is a regular keynote speaker and presenter covering depreciation services on television, radio, at conferences and exhibitions Australia-wide. Please contact 1300 728 726 or visit

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