Don’t forget to depreciate when you update

One of the most investor com­mon enquir­ies received by spe­cial­ist Quant­ity Sur­vey­ors is the ques­tion ‘what hap­pens to the depre­ci­ation deduc­tions that can be claimed if you decide to remove an asset and replace it with a new one?’

There are a couple of rules and recom­mend­a­tions a renov­at­ing for profit investor must fol­low to ensure that they claim deduc­tions cor­rectly and max­im­ise their claim. A Quantity Surveyor completing a depreciation schedule after a Renovation in Old Toongabbie

  1. Any assets removed dur­ing a renov­a­tion may have remain­ing deduc­tions avail­able. It is import­ant to ask about scrap­ping dur­ing the renov­a­tion pro­cess, as own­ers are entitled to claim the remain­ing deduc­tions for any items removed and replaced dur­ing the renov­a­tion. To be entitled to claim assets removed a ‘before renov­a­tion’ depre­ci­ation sched­ule should be arranged.


  1. Fol­low­ing this, an ‘after renov­a­tion’ deprec­a­tion sched­ule should be pre­pared to take into account the new assets and struc­tures found within the prop­erty. At just a small adjust­ment fee, a new sched­ule will be com­pleted run­down all the depre­ci­ation claims avail­able for the life of the dwell­ing (40 years).


  1. For investors pur­chas­ing an older invest­ment prop­erty and seek­ing to obtain a depre­ci­ation sched­ule for the first time, it’s renovating for profit in Girraween - house tipping over -import­ant to note that any renov­a­tions com­pleted by a pre­vi­ous owner can also be claimed as long as the work took place within the legis­lated dates.


  1. Enlist a cred­ible tax depre­ci­ation spe­cial­ist such as BMT Tax Depre­ci­ation to take the fin­an­cial stress out of renov­at­ing a prop­erty. BMT are lead­ing experts in the field, provid­ing ATO com­pli­ant and com­pre­hens­ive tax depre­ci­ation sched­ules to prop­erty investors Australia-wide.


To ensure all items are accoun­ted for when com­plet­ing renov­a­tion work, investors should seek pro­fes­sional advice, as prop­erty deprec­a­tion can sig­ni­fic­antly increase a prop­erty owner’s annual tax­able income. Simply call BMT Tax Depre­ci­ation on 1300 728 726 to dis­cuss any prop­erty scenario.


Brad­ley Beer is Man­aging Dir­ector of BMT Tax Depre­ci­ation. Brad has over 15 years exper­i­ence in the prop­erty depre­ci­ation, build­ing and con­struc­tion industry. Brad is act­ively involved in edu­cat­ing prop­erty investors and property-related organ­isa­tions about the import­ance of tax depreciation.

Brad is a reg­u­lar key­note speaker and presenter cov­er­ing prop­erty depre­ci­ation ser­vices on tele­vi­sion, radio, at con­fer­ences and exhib­i­tions Australia-wide. Some of these include:
* Prop­erty Expos — Aus­tralia Wide
* National Tax & Account­ants Asso­ci­ation
* Defence Hous­ing Aus­tralia
* Tax­a­tion Insti­tute of Aus­tralia
* Real Estate Insti­tute Aus­tralia
* Reg­u­lar train­ing events for national cor­por­ate real estate groups
* Reg­u­lar appear­ances on Fox­tel Pro­gram Your Money Your Call shown on Sky News Busi­ness Channel.

Brad­ley Beer (B. Con. Mgt, AAIQS, MRICS) is the Man­aging Dir­ector of BMT Tax Depre­ci­ation. Please con­tact 1300 728 726 or visit for an Aus­tralia wide service.

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