Property Investors
Many investors are able to improve the return on their property investment and produce a healthier cash flow by maximising the available tax deductions.
Property Wealth depreciation schedules
Our core focus is tax depreciation for property investors
At Property Wealth our core focus is on preparing Taxation Depreciation Schedules for property investors. Our research is ongoing, keeping us up to date with the continually changing legislation that relates to construction and depreciation claims.
Our Taxation Depreciation Schedules are prepared in accordance with the current legislation and do not exceed the boundaries of the law.
For the investor
Does your property qualify for the Division 43 construction allowance?
The Division 43 Construction Allowance qualifies if your residential investment property was built on or after 18 July 1985 and amounts to either 4% or 2.5% of your portion of the construction costs of the whole unit complex or dwelling. In addition, structural improvements such as concrete driveways, fencing, clothes lines etc can also be claimed where construction commenced on or after 27 February 1992.
Please refer to the table below to see if you qualify. Commencement dates refer to the actual construction start date.
Construction allowance rates
| Building classification | Rate | Commencement dates |
|---|---|---|
| Traveller accommodation Hotels, motels | 2.5% | 21 Aug 1979 – 21 Aug 1984 |
| 4.0% | 22 Aug 1984 – 15 Sep 1987 | |
| 2.5% | 16 Sep 1987 – 26 Feb 1992 | |
| 4.0% | 27 Feb 1992 – present | |
| Manufacturing Buildings used for processing of raw materials etc. | 2.5% | 20 Jul 1982 – 21 Aug 1984 |
| 4.0% | 22 Aug 1984 – 15 Sep 1987 | |
| 2.5% | 16 Sep 1987 – 26 Feb 1992 | |
| 4.0% | 27 Feb 1992 – present | |
| Non residential Commercial, industrial, retail | 2.5% | 20 Jul 1982 – 21 Aug 1984 |
| 4.0% | 22 Aug 1984 – 15 Sep 1987 | |
| 2.5% | 16 Sep 1987 – present | |
| Residential Dwellings, units, townhouses | 4.0% | 18 Jul 1985 – 15 Sep 1987 |
| 2.5% | 16 Sep 1987 – present | |
| Structural improvements Fences, paving, retaining walls, septic tanks, water tanks etc. | 2.5% | 27 Feb 1992 – present |
To determine the original construction cost of your building and thus claim the Division 43 Construction Allowance, you will need to engage the services of a qualified Quantity Surveyor. ATO Rulings state that where a taxpayer is genuinely unable to precisely determine the actual cost of the building for the purposes of Division 43, a building cost estimate by a Quantity Surveyor or other independent qualified person may be used.
Maximise your investment property’s tax depreciation
Order your tax depreciation schedule online, or call us for a no obligation quote.