A paper released by the Australian Institute of Quantity Surveyors (AIQS) has emphasised the importance of completing site inspections in creating accurate and compliant tax depreciation schedules. This supports BMT Tax Depreciation’s unwavering dedication to conducting site inspections, even amid the challenges posed by COVID-19 lockdowns.
The AIQS has introduced a clear standard for ethical conduct and collaboration within the industry: “The Quantity Surveyor’s Guide to Residential Tax Depreciation,” which presents a comprehensive framework designed to minimise risks. The guide promotes industry-wide consistency, prevents unethical practices, and ensures the protection of clients, accountants, and quantity surveyors.
BMT was consulted during the process.
Not all tax depreciation schedules are created equal. This distinction becomes clear when observing the various categories of schedules and the extensive spectrum of expenses presented by quantity surveying companies all over the country. Examples of such variations include the offering of cheap self-assessed schedules, promises of significant deductions prior to schedule preparation, and the utilisation of online property portals as an alternative to site inspection.
To complete a comprehensive tax depreciation schedule, it’s essential to conduct a physical site inspection. It’s impossible to identify every depreciable asset, renovation and hidden expenditure like wiring, plumbing and extensions completed by previous owners without a thorough inspection completed by a specialist. This position is endorsed by the AIQS and the National Tax and Accountants’ Association. Notably, according to BMT Tax Depreciations own data from preparing over 800,000 tax depreciation schedules, approximately 66 per cent of investment properties have undergone some form of renovation, underscoring the significance of thorough inspections.
BMT’s commitment to accuracy is exemplified through its rigorous site inspection process. BMT conducts thorough on-site assessments to ensure every depreciable item is identified, leading to more accurate and maximised claims for clients.
In situations where a site inspection can’t be conducted, as outlined in this guide, the quantity surveyor is required to provide the client with a formal statement detailing the reasons behind this limitation. A disclaimer must be included in the statement, indicating that the report’s accuracy may be compromised, and the author assumes no liability for any resulting inaccuracies.
It’s important that property investors recognise the significance of this; once a schedule is finalised, the quantity surveyor responsible for its preparation bears no responsibility or liability for any potential audits or offers assistance in such situations in the event of inaccuracies.
When seeking a tax depreciation schedule, investors are encouraged to inquire about how compliance is achieved and the process with the quantity surveyor.
In a landscape where collaboration among professionals is common, the guidelines also set a clear standard for ethical conduct when it comes to referral fees. In cases where a quantity surveyor is involved in the exchange of referral fees with an accountant, property manager, or any other third party, this must be disclosed to the client. This principle ensures transparency and integrity, fostering a sense of trust among all parties involved.
A hallmark of BMT’s transparent and client-centric approach is the company’s policy of not paying referral fees to third parties. This reinforces BMT’s dedication to providing unbiased advice and ensures that its recommendations are solely based on the best interests of clients.
BMT leads the industry in tax depreciation expertise, which is evident in their ability to achieve higher deductions and robust tax depreciation schedules in the event of a client ATO audit.
The AIQS’s release of these guidelines signifies a new era of collaboration, transparency, and ethical practices in property depreciation.
BMT Tax Depreciation’s commitment to ATO compliance provides investors with a rock-solid foundation. Their expert team meticulously follows the ATO and AIQS guidelines to generate accurate and compliant tax depreciation schedules. This compliance ensures that investors remain on the right side of the law while harnessing the full potential of their property investments.
For more information on BMT’s compliant tax depreciation schedules, call the experts on 1300 728 726 or Request a Quote.