Introduction: Stop Overpaying Tax—Claim What’s Yours!
If you’re not claiming maximum tax depreciation, you’re giving away thousands of dollars to the ATO every year. And for what?
Smart investors use tax laws to their advantage. Depreciation is a 100% legal, ATO-approved way to reduce your taxable income and boost your cash flow—so why wouldn’t you use it?
Here’s how to maximize your deductions and keep more money in your pocket.
What is Tax Depreciation?
Tax depreciation lets you claim the wear and tear on your investment property as a tax deduction.
✅ Building Depreciation (Capital Works Deductions) – Covers structural elements like walls, floors, and roofing. Can be claimed over 40 years.
✅ Plant and Equipment Depreciation – Covers fixtures and fittings like air conditioners, carpets, blinds, and appliances. Can be claimed over several years.
How Much Can You Claim?
A professionally prepared depreciation schedule can unlock $5,000–$15,000 per year in tax deductions—sometimes more.
Example:
💰 Property purchase price: $500,000
💰 Depreciation claim (Year 1): $12,000
💰 Tax saving (at 37% tax rate): $4,440 in real cash
That’s an extra $370 per month in your pocket—for doing nothing!
How to Claim Maximum Depreciation:
1. Get a Professional Depreciation Schedule
• Engage a qualified quantity surveyor.
• Ensure they inspect the property in person.
• Update your schedule when you renovate or upgrade fittings.
2. Don’t Assume Older Properties Don’t Qualify
• Properties built after 1987 are eligible for capital works deductions.
• Renovated properties may still qualify for plant & equipment deductions.
• If in doubt, ask a professional—you might be missing thousands in claims.
3. Work with an Investor-Savvy Accountant
• Not all accountants understand property tax strategies.
• Ensure yours specializes in real estate tax planning.
• Review your depreciation claims annually to stay compliant and maximize returns.
Final Thoughts: If You’re Not Claiming, You’re Losing
Tax depreciation isn’t a loophole—it’s a legitimate, government-sanctioned way to pay less tax and keep more cash.
If your accountant isn’t helping you claim everything you’re entitled to, you’re burning money. We can implement a strategy to fix it.
