Depreciation Law Changes Archives

The Property Depreciation Laws have changed.

For anyone buying an investment property after the 9th of May 2017, you need to read this. There have been major depreciation law changes for investment properties.

If you have purchased a second-hand property after this date – or your previously purchased property was not income producing during the 2016/2017 financial year – you can no longer claim depreciation deductions on the property plant and equipment.

The Australian Taxation Office now defines these second-hand assets as “Previously Used” assets.

The good news is, the change in property depreciation law has not changed the following:

If you acquired the investment before the 9th of May – 2017, you are not affected. Why? Because the government decided to “grandfather” these changes. That means anyone that has purchased before this date will remain on the same regime. Note: the property must have been income-producing before 1 July, 2017.
If you purchased the property in a company name, you would not be affected as these entities are excluded from the new laws. Note: this does not include self-managed super funds.
If you have purchased a commercial, retail or industrial property, the legislation do not affect you. These new laws only relate to residential property.

The series of blogs below will outline some of the changes and how they affect you as a property investor.

Some key places to start are:

Depreciation Law Changes Articles:

difderence between residential and commercial depreciation

Differences Between Commercial And Residential Property Depreciation

If you own your own business, are you currently leasing commercial space but considering buying your own premises? Or are you considering investing in your next property but can’t decide between a commercial or residential investment? Commercial property has fared far worse than residential property since Covid and beyond. The number of transactions has plummeted. […]

Depreciation as it applies to Different Ownership Structures

An investor recently asked me, ‘Should I buy an investment property in my own name, my company name or via my super fund to maximise depreciation?’ While the tax implications are a very important part of your property investment strategy, I would never make taxation the number one reason for determining how I structure my […]

How the new depreciation laws affect depreciation on old property

There is a common misconception in the property market that you cannot claim depreciation on old properties. This is wrong, and I can prove it! The origin of this myth centres on the fact that you cannot claim building depreciation on residential properties where the construction commencement date is before 1987. This is a true […]

Depreciation Law Changes to Rental Properties – Complete Guide

Top * changes to property depreciation laws Under the new Depreciation Tax Law Changes, property investors who acquire a second-hand residential property on or after 10 May 2017 that contains “previously used” assets will no longer be able to claim depreciation on those eligible assets. In this case, existing assets include ovens, dishwashers or blinds. […]

Close up of female accountant or banker making diminishing value calculations

The Five Things Your Tax Depreciation Schedule Must Contain

An investment property tax deductions calculator won’t always show you everything you can claim. Many leave out the assets that go into a typical depreciation schedule. Here are the things that your tax depreciation schedule must contain. When it comes to tax, there’s one question you must ask about your investment property: what can I […]

Claim Depreciation on Previous Owners’ Renovations

You Can Claim Tax Deductions in Australia for Previous Renovations When considering tax deductions in Australia, most investors only take their own renovations into account. It does make sense. After all, why should you be eligible to claim deductions on your investment property in Australia if you didn’t pay for the work? Perhaps surprisingly, you […]

8 Tips To Maximise Your Tax Return

It’s hard to believe, but we’re approaching that time of the year again – tax time! As the end of the financial year draws closer, you’ll likely start thinking about that big fat tax refund and what you can do with it. But first you need to make sure you maximise your cheque. To help […]

Busting the 8 Myths of Depreciation Schedules

There are many myths floating around when it comes to tax depreciation. Especially regarding what property investors are entitled to claim. Below are some of the most common myths I have heard during my time as a qualified Quantity Surveyor. NOTE: Information below regarding plant and equipment items may only apply to properties purchased prior to May […]

Information for New Build Properties

If you’ve engaged a builder, bought a house and land package, or constructed a brand new home yourself, then there is some great news! The 2017 Budget changes to depreciation don’t affect you (provided you never lived in the house yourself); and, We can generally complete your report at a lower fee, as […]