What is depreciation?

Depreciation is a tax deduction which is available to be claimed by owners of income producing properties and commercial tenants each financial year. It is the decline in value of the building structure and the plant and equipment assets within it that the Australian Tax Office (ATO) allows as a deduction to be claimed.

Depreciation is often one of the most missed and under claimed deductions. It is considered a non-cash deduction as you don’t need to spend any money on the property to claim it.

Claim significant deductions

Depreciation is able to be claimed under two separate components:

Capital works deductions

Capital works deductions
Also known as building write-off, this is the decline in value of the building structure which is generally able to be claimed by the property's owner. 
commercial-kitchen-showing-plant-equipment-assets

Plant and equipment

Plant and equipment
This refers to items which can be easily removed from the property and this category is generally where commercial tenants can maximise their deductions.

Typical depreciable plant and equipment assets include:

  • Air-conditioning units
  • Hairdressing chairs
  • Bathroom and kitchen appliances, bookcases and accessories
  • Desks and Chairs
  • Carpet
  • Curtains, blinds and window dressings
  • Flooring
Contacting a specialist Quantity Surveyor with experience in preparing tax depreciation schedules for commercial tenants ensures that maximum deductions are found. Request a Quote Today

Case studies

See the case studies below for some of the typical deductions we have found for a range of commercial properties.

Warehouse purchase price:
$1 million
First year deductions: $54,630
Dairy farm purchase price:
$3.6 million
First year deductions: $345,300
Office building purchase price:
$1.1 million
First year deductions: $40,000
Pub:
$1.1 million
First year deductions: $73,290
Small warehouse purchase price:
$650,000
First year deductions: $29,850
Retail shop:
$875,000
First year deductions: $43,500
Hotel:
$2 million
First year deductions: $97,895
Cattle farm purchase price:
$2.1 million
First year deductions: $235,000
Poultry farm purchase price:
$2.1 million
First year deductions: $373,200
Sheep farm purchase price:
$2.6 million
First year deductions: $311,500
Vineyard purchase price:
$4.5 million
First year deductions: $463,000
View More

How do I organise a schedule?

Engaging BMT Tax Depreciation to complete a commercial depreciation schedule can mean that you’re able to claim back thousands in deductions each financial year.

Get a Quote

Request a quote for your tax depreciation schedule.

Property details

Property details are collected and BMT will arrange access to complete a property inspection.

Claim deductions

Your schedule will be available within 5 – 7 days of all information being gathered. BMT can even forward your schedule to your Accountant directly, saving you time.

BMT Tax Depreciation can complete the tax depreciation schedule for your business today - call us on 1300 728 726 for a competitive and comprehensive quote now.

Read our latest blog posts from BMT Insider

Learn more about commercial property depreciation here

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Talk To Us

Take the next step or find out more about depreciation

Talk to a depreciation specialist on 1300 728 726 , email info@bmtqs.com.au , contact us now via LiveChat or simply request a quote and we’ll be in touch.