Can you still claim on old property?
Yes and no, the changes to depreciation laws mean that you can no longer claim plant & equipment depreciation on old property. However, you can still claim the building allowance if the property’s age is later than 1987.
If the you own a property that has post-1987 renovations, you are likely eligible to claim depreciation on these works.
You used to also be able to claim depreciation on previously used Plant & Equipment assets within a building. Now you can only depreciation on the structure of the building itself – known as the building allowance.
Are depreciation reports worthwhile on older properties?
The answer to that is – Sometimes. If the property was built prior to 1987 and has no renovations – then a depreciation schedule will probably not be of very much interest to you.
If, however, the property was built after 1987, then you will be eligible to claim the building allowance on the property.
What is the building allowance?
The building allowance relates to the structure of the building, that you as a property investor can claim depreciation deductions on.
Do I need an accountant or a Quantity Surveyor?
You need a quantity surveyor to work out the depreciation claim where the original construction costs are unknown.
The Tax Office put out a ruling in 1997 that only allows Quantity Surveyors to estimate the costs of the building where the costs are unknown.
