Property Depreciation Schedules - The New reality

Case Study – Brand New Apartment

Client Name and Unit Number have been altered for privacy.

 

Having recently settled on an off-the-plan apartment in Clayton, Victoria, Paul’s accountant suggested he contact Washington Brown to maximise his tax deductions.

The 74sqm, 2 bedroom, 2 bathroom apartment was purchased for $559,000 in 2020.

Floor Plan of Paul’s 2 Bedroom Apartment

As Paul was the first owner and had never occupied the property himself, he was eligible to claim deductions on both the structural elements (Building Allowance / DIV 43) and the fixtures/fittings (Plant & Equipment / DIV 40).

Washington Brown was able to achieve the below, ATO-compliant deductions for Paul. As he settled in August, the first years’ figures show the maximum deductions available based on 11 months’ ownership in that financial year.

By forwarding the depreciation schedule files to his accountant, Paul benefited from a first year tax depreciation deduction of almost $17,000. The schedule/report detailed over $300,000 worth of deduction over the full 40 year period.

Note: Please scroll across on mobile to view full deductions.

Financial Year Plant & Equipment Low Value Pool Assets Capital Works Deductions Amount Claimable
2020 / 2021 $9,674 $1,109 $6,113 $16,895
2021 / 2022 $4,095 $1,802 $6,680 $12,577
2022 / 2023 $3,322 $1,126 $6,680 $11,128
2023 / 2024 $2,731 $704 $6,680 $10,115
2024 / 2025 $2,271 $440 $6,680 $9,391

To view the full depreciation schedule, including an individual asset break up and Prime Cost deductions, you can download a copy here.

If you would like to get your own depreciation schedule, or find out how much you could claim, get a quote here.