How Much Does a Depreciation Schedule Cost?
Typically, you could expect to pay between $385-$770 for a depreciation schedule. Your fee will vary based on the property type, location and complexity.
$500-600 is a fairly standard price for an established, residential home. In these circumstances, the properties aren’t brand new. This usually means you’ve purchased it from another investor or a former owner-occupier.
You might qualify for a discounted fee if you have built a brand new property or purchased a new apartment. This discount is dependent on having the construction contract, plans and a schedule of finishes available.
What causes a variance in depreciation report cost across different companies? It usually comes down to the quality of the service that the qualified quantity surveyor provides. Paying less may mean that you save money in the short term. However, it could also result in you claiming fewer tax deductions on your investment property.
To find out exactly how much a depreciation schedule costs for your property – request an obligation-free quote from our tax depreciation specialists here.
The Timeline Process
You’ll need a property depreciation schedule for any established investment property in Australia. This allows you to create a timeline that contains details about the property’s history. These details usually include the cost and completion date of the property’s original construction and any previous owners’ renovation work. You can claim rental renovation tax depreciation if either you or the previous owner has carried out this work.
Your qualified quantity surveyor does this so you can assign a new depreciation life cycle to your second-hand assets. However, you can only do this on assets in a property purchased before the 2017 Federal Budget changes. You may not be able to claim tax deductions on the property plant and equipment you bought after May 9th, 2017; this is the Division 40 allowances. The good news is that deductions on the capital works structure of your property are unaffected.
The purpose of your timeline is to show what tax deductions you can claim. It will also create an annual schedule for these claims.
What Do I Get at the Lower End of the Scale
Let’s assume you have decided to work with a quantity surveyor who charges less than $300. That’s a few hundred extra dollars in your pocket, but the schedule you receive may not be as detailed as you would like.
For example, most surveyors at the lower end of the price scale don’t usually provide the following:
- The option to use low-value and low-cost pooling to increase the amount you can claim
- Completion of additional searches that would have helped to find approved works by previous owners that you can claim for
- The complete itemisation of the individual assets contained in the property
- Adjustments of the effective lives of your second-hand assets
Furthermore, you may find that a cheaper surveyor does not have the relevant skills or experience. As a result, you don’t get the most out of your assets. You’ll still get a tax depreciation schedule for rental property. However, it won’t allow you to claim as many tax deductions in Australia as you may be entitled to.
What Do I Get With a More Expensive Quantity Surveyor
More expensive surveyors tend to provide better depreciation schedules.
You’ll receive all the following if you pay more for your depreciation schedule:
- A completely accurate estimate of construction costs so that you claim the maximum tax deductions on your property. This increases your return on investment and cash flow by up to 40 years.
- Access to more knowledge about the latest tax legislation
- Checks to ensure that when you claim depreciation, the Australian Taxation Office (ATO) requirements
- A more reliable point of contact to ask questions
Such surveyors also have more experience, which they can use to your advantage. You’ll unlikely present them with any scenarios they aren’t familiar with.
What about Brand New Properties?
That covers any second-hand assets that you have in an established residential home. But what if you’ve bought a new property? These won’t contain any second-hand assets that need reporting.
As a result, you can expect to pay less for your depreciation schedule. This is because most newly built properties come with more information. Your surveyor can use this to create more accurate estimates.
They’ll have access to construction costs, floor plans, and, at times, even the value of the assets that came with the property. This means they don’t have to carry out an inspections= that they might do to estimate the value of second-hand assets in an established home.
Even with this lower cost, you will still receive the same level of service. The depreciation report will apply the home’s new assets to an immediate or long-term pool. This ensures you can claim the maximum tax deductions on your property this financial year.
If you have just purchased or constructed a brand new property, request your discounted quote here.
How Much Does a Depreciation Report Cost for a Commercial Property?
Prices may vary for commercial properties. After all, larger commercial properties require more work than regular-sized residential properties.
Schedules for small offices cost about the same as you’d pay for a residential report. However, the price may increase along with the size of your property. Even so, it’s worth getting a depreciation schedule. Not only will it help you with asset deductions, but you can also deduct the cost of the schedule from your taxes.
About Tyron Hyde
Tyron Hyde is the CEO of Washington Brown Quantity Surveyors. He is regarded as one of the industry's leading experts in property tax depreciation, is regularly quoted in the media & asked to speak at conferences.
Learn why more Property Investors Choose Washington Brown to prepare their depreciation reports.