Nursery and garden centre owners may be seeing a growing demand for a more diverse range of plants and gardening supplies.
A recent campaign from Nursery and Garden Industry Australia suggests Australians are looking to improve their health and wellbeing by placing plants in their homes while also becoming more interactive with new technology.
As such, owners of nurseries could be looking to purchase new assets that will cater to this additional stock and improve how their plants and garden supplies are displayed.
However, acquiring these new items can often be a costly business expense.
The good news is that these costs can be minimised if the business owner claims depreciation.
The Australian Taxation Office (ATO) allows commercial property owners and their tenants to claim depreciation deductions related to the wear and tear of a building and any plant and equipment assets contained within.
Garden centre owners and tenants can claim depreciation for a number of assets commonly found on such premises including shelving, watering systems, computer equipment, work benches, trolleys and ladders, as well as more standard commercial assets such as sinks, windows, bricks and mortar.
The table below showcases the depreciation available for a nursery purchased for $950,000.
As you can see the nursery owner was able to claim $38,003 in deductions in the first full financial year and $383,934 in deductions over the life of the property.
These deductions are quite significant and should not be overlooked, given the difference they can make to a business owner’s cash flow.
When it comes to commercial properties, both owners and tenants are able to claim depreciation. Owners are entitled to claim deductions relating to the building structure and any fixed assets and plant and equipment they own, while tenants can claim on any fit out they install after commencing their lease.
The fee for preparing a tax depreciation schedule is 100 per cent tax deductible
To learn more about claiming depreciation for any commercial property, visit our commercial property depreciation page.