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Speak with Australia’s multi-award-winning Property Depreciation Experts, Washington Brown, and maximise the deductions you can claim on your new property today.

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Get The Most Out Of Your Brand New Property

Those familiar with property depreciation know that they can save thousands or even millions on commercial property that they own. But when it comes to a property they’ve built or purchased brand new; the answers aren’t always so cut-and-dry.

So, can you claim depreciation on any new property you’ve developed? Yes, but making such tax claims can be difficult without the proper support.

Getting started is as simple as reaching out to Washington Brown! With our extensive knowledge of property depreciation and guidance, we can ensure that you’re receiving the entire claim amount you deserve.

Maximise your claims by calling us at 1300 990 612 today!


Maximising Your Claims With Washington Brown

The mistake that many real estate owners will make is trying to conduct their own property depreciation audit. Without the proper support, you can end up missing out on thousands of dollars that you would have otherwise been able to claim.

Additionally, misreporting can result in an ATO audit that could have been avoided. Fortunately, Washington Brown is dedicated to making sure that you’re able to maximise your depreciation claims safely and effectively.

At Washington Brown Depreciation, we are experts in property tax depreciation. Our specialist residential property depreciation team offers you more significant savings by leveraging their extensive experience to find claims on your property.

Where necessary, we inspect your property or review project documents to ensure it meets the necessary ATO requirements (as per the Australian Institute of Quantity Surveyors Code of Practice), document and photograph all evidence of depreciation to keep you protected in the event of an audit and handle the calculation of your claim for you.

Contact us today if you’re ready to file your claim!


How It Works

Getting Started With Washington Brown

Step 1: Contact Us

When you’re ready to maximise your tax savings on your property, contact us. Where necessary, we’ll conduct a property inspection to ensure that your real estate deductions meet ATO requirements.

Step 2: Let Us Find Opportunities to Claim

We go through the process of analysing your property, finding deductions, and documenting all claims so that you can rest assured that you’re getting all of the savings that you’re able to claim from your property.

Step 3: Save Money!

As a real estate owner, Washington Brown is dedicated to helping you save money. Just reach out to us, let us find your claims, and save! It is that easy.


Case Study – Brand New House

See What We’ve Accomplished For Those Making Claims On New Properties.

Location:
Sydney
Construction Completion Date:
01/07/2016
Available for Incoming Producing Purposes:
01/07/2016
Construction Cost:
$250,509
First Year Claim:
$19,600

This client built a brand new house and immediately listed it for rent, meaning they could claim the maximum deductions straight away. Keep in mind that final results will vary.

The Claim

* Please note that these results are only accurate for properties purchased before 9 May 2017 due to changes in the Federal Budget. To see how properties purchased after this date are affected, visit our comprehensive Post-Budget FAQs.

These are the final amounts the client could claim each year, based on the diminishing value method. The claim includes both the capital works deductions (i.e., bricks and mortar) and the plant and equipment (i.e., the fixtures, fittings, and appliances), both of which are explained in more detail below.

As you can see, a newly built property can yield substantial deductions; this client could claim $19,600 in the first year alone.

Factors That Affected The Final Claim

Building Allowance (Capital Works Deductions)

The depreciation of the building structure itself is pretty simple. To calculate the building allowance, we take the total construction costs and deduct the cost of plant and equipment and any ineligible items (like demolition and plant). The deductions will be 2.5% per full year of the building allowance, totalling 40 years. In this case, $5,058 is claimable per full financial year. The graph below only shows the first ten years; a full report calculates up to 40 years.

Plant And Equipment

These are items such as blinds, carpets, appliances, light fittings, etc. The total value of these items in this house was $45,379. These items depreciate at a faster rate than the ‘bricks and mortar’ classified as Building Allowance.

Case Study – Apartment

See What We’ve Accomplished For Those Making Claims On New Properties.

Location:
Sydney
Settlement Date:
02/08/2016
Purchase Price:
$830,798
First Year Claim:
$19,622

This client purchased a high-rise apartment in 2016. The building was built in 2015, meaning 39 years of building allowance deductions were left and the plant and equipment depreciation. The client’s share of common property was also included in their schedule.

The Claim

* Please note that these results are only accurate for properties purchased before 9 May 2017 due to changes in the Federal Budget. To see how properties purchased after this date are affected, visit our comprehensive Post-Budget FAQs.

These are the final amounts the client could claim each year, based on the diminishing value method. The claim includes both the capital works deductions (i.e. bricks and mortar) and the plant and equipment assets (i.e. the fixtures, fittings and appliances), both of which are explained in more detail below.

As you can see, high-rise apartments can yield substantial deductions, with construction costs often relatively high; this client was able to claim $19,622 in the first year alone.

Factors That Affected The Final Claim

Building Allowance (Capital Works Deductions)

The depreciation of the building structure itself is quite simple. To calculate the building allowance, we take the total construction costs and deduct the cost of plant and equipment and any ineligible items (like demolition and living plants). The deductions will be 2.5 per cent per full year of the Building Allowance, totalling 40 years.

Apartments often have a high construction cost in relation to their living areas compared to houses. This is because the property’s share of common areas, including lobbies, pools, underground car parks, etc., can all be included in most states.

In this case, $7,854 is claimable per full financial year. The graph below only shows the first ten years; a full report calculates up to 40 years.

Plant And Equipment

These are items such as blinds, carpets, appliances, light fittings, etc. The total value of these items in this house was $45,379. These items depreciate at a faster rate than the ‘bricks and mortar’ classified as Building Allowance.

High-rise apartments depreciate a lot because they have a lot of plant and equipment you don’t know about, including fire services, internal ventilation fans, common property items such as lights and carpet, and much more. We’ve done tens of thousands of these jobs, so we ensure you don’t miss out on anything!


See For Yourself

To see sample depreciation schedules for a range of property types, download a copy below. Reading it through may help you understand the process and how it could apply to you.

Download Sample Report

Want to see how much you could claim on your property? Use our online calculator to get an estimate within seconds by following these simple steps:

  1. Click through to our Depreciation Calculator
  2. Enter the property’s Purchase Price, Build Year, Type, and Standard of Finish
  3. Click ‘Calculate’ and view your results

Frequently Asked Questions

Learn How Washington Brown Can Help You

What Is Depreciation?

Property depreciation occurs when an asset loses value over time due to physical deterioration.

According to Australian tax law, individuals who own real estate used for income-producing purposes are entitled to claim the depreciation of that property against their taxable income.

There are two types of depreciation allowances available for properties:

With both the building itself and the items outside of it experiencing damage over time, you can make claims on both types of items to reduce your taxable income and maximise your profits.

How Much Can I Claim In Depreciation Deductions?

Having a depreciation schedule for the property will enable most owners to claim tens of thousands in depreciation. However, many factors will play a role in how much you’re able to deduct, including the asset’s size, age, and value.

Every property is different, and many varying factors must be considered when preparing a property depreciation schedule for your individual property.

As we recommended above, you can use the New Property Depreciation Calculator to give you an estimate of potential deductions for your property. Then, we can provide you with the comprehensive support you need to act on these savings.

Do You Need To Get A Professional Depreciation Schedule?

Yes. A depreciation schedule will maximise the tax savings on your investment.

The good news? You only need to get it done once, which you can easily accomplish with a Washington Brown depreciation schedule valid for up to 40 years (the lifetime of the building). However, we recommend updating the report if you do any renovations, repairs, or replace internal items.

You can provide the report straight to your accountant at tax time.

How Much Does A Depreciation Schedule Cost?

The cost of preparing a tax depreciation schedule varies according to numerous factors, including your property’s location and size.

The main factor determining the price is whether the property needs to be inspected or not.

Get an individual obligation-free online quote from Washington Brown now.

The fees are 100 per cent tax-deductible, and we guarantee you’ll save at least twice our fee in the first 12 months, or there will be no charge!


Ready To Claim Depreciation On Your Brand New Property?

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