New figures from Tourism Research Australia have shown that camping, caravan and RV trips are at an all-time high with overnight trips reaching 12.3 million for the 2017/2018 financial year.
As caravan parks are growing in popularity, caravan park owners are increasingly looking to make improvements to their facilities including updating bathrooms, communal kitchens and pool areas as well as undertaking more maintenance that comes with increased use.
Given that peak holiday season is just around the corner, let’s take a look at the way claiming depreciation deductions can save freehold park operators thousands and provide cash flow flexibility to make some much needed renovations.
Save thousands with depreciation
The following table shows the first full year, first five year and total lifetime deductions available for a freehold, owner operated facility.
As you can see from the above figures, depreciation can provide significant savings and allow caravan park owner operators to get their parks in tip top condition for the holiday crowds.
Commercial leaseholders can claim depreciation
Many leaseholders are unaware that they are also entitled to claim depreciation deductions. While freehold park operators can claim deductions relating to the building structure and fixed assets, leaseholders can claim on loose assets and plant and equipment (subject to details in their lease document) and any fit out they install after commencing their lease.
To benefit from depreciation, it is important to consult an expert to prepare a tax depreciation schedule. Legislation recognises Quantity Surveyors as being one of a few select professionals with the knowledge necessary to estimate construction costs for depreciation purposes.
Why choose BMT Tax Depreciation?
With more than twenty years of experience, BMT’s specialist staff conduct physical property inspections to ensure that all claimable assets are included in each tax depreciation schedule so that claims are maximised. You can also rest assured knowing that your schedule is compliant with the Australian Taxation office should there be an audit.
For more information on claiming depreciation for your caravan park or commercial property, visit bmtqs.com.au/commercial or call the expert team on 1300 728 726.
To request an obligation-free quote for a tax depreciation schedule, visit bmtqs.com.au/apply-online/commercial.