Frequently asked questions.
Can I claim renovations?
Yes. The ‘Special Building Write-off’ can be claimed as long as the renovations were undertaken after February 26, 1992. You can ALSO claim Architects and Engineers’ fees. Structural inclusions such as retaining walls and sealed driveways, if undertaken after this date also qualify.
Do I need receipts?
No, our quantity surveying and building experience enables us to accurately estimate the cost of ‘capital works’ as well as all depreciable Assets. We do not need plans either.
Who organises the inspection and how long will the schedule take?
We organise everything and it usually takes around two weeks (depending on your tenant) to complete your report. You provide us with the contact details for your managing agent and we organise everything else.
Can a Tax Depreciation Schedule increase my investment return?
The answer in the majority of cases is yes. A Tax Depreciation Schedule can reduce an investor’s taxable income, and hence by claiming these deductions, investors can significantly enhance the after tax return from their investment and generate a healthier cashflow.
When is the best time to obtain a Tax Depreciation Schedule?
The best time is usually as soon as possible after settlement. This allows all items of plant and equipment included in the original purchase price as distinct from any other items and/or expenses incurred during the remaining period of ownership.
Where do I get a Tax Depreciation Schedule from?
The Australian Taxation Office (ATO) has determined that a Quantity Surveyor is a “qualified person” to estimate construction costs for the purposes of the Income Tax Assessment Act (1936).
What is a Qualified Quantity Surveyor?
A Qualified Quantity Surveyor is an independent professional consultant to the property and construction industries, offering advice to investors, builders, developers, financiers and private clients.
How much does a Tax Depreciation Schedule cost?
The cost associated with preparation of a Tax Depreciation Schedule varies from firm to firm. Generally, firms charge depending on the level of resources required to produce the reports, the degree of expertise in the area, location of the property and the depth of analysis required. Some firms are notorious for expensive fees and whilst the cost associated with the preparation of a Tax Depreciation Schedule are fully tax deductible; you should obtain several fee proposals prior to the engagement of a firm.
How does the tax depreciation schedule process work?
1. Booking is made either through applying online, sending in an application form or through your accountant.
2. We arrange access with your agent and/or tenant and our ATO recognised Quantity Surveyors measures the building, estimates construction costs and records ALL depreciable items. (This is the most accurate method and is why we are able to offer our guarantee)
3. We then take all this information and compile a comprehensive report, detailing exact amounts you are entitled to depreciate every year for the next 40 years with full compliance with the ATO.
Who can undertake a depreciation report?
Australian Tax Office (ATO) have made it a requirement for all property investors to have a depreciation report undertaken by a Qualified Quantity Surveyor. The Qualified Quantity Surveyor will evaluate the site and provide conclusive data in which the schedule is based on. The report is reviewed by the ATO when investors claim tax deductions for depreciation on their investment properties.
Do we offer any financial guarantees?
If AusDep inspects an investment property and does not assess depreciation entitlements to an amount double our fee in the first full financial year, we will refund the fee and provide the report for FREE.