A Christmas message from our CEO
It’s that time of year when most of you will be coming together with your family and close friends to celebrate the year that has gone by and think about the accomplishments you have achieved.
2017 has been an incredible year for the team at BMT Tax Depreciation. We’ve made some exciting new developments, such as the launch of our online portal MyBMT giving investors, Accountants and Property Managers access to a variety of valuable tools.
It has also been a year of change for the property market.
Some investors have started to feel the effects of measures implemented by the Australian Prudential Regulation Authority (APRA) over recent years. However, continued record-low interest rates have meant there are still plenty of opportunities to purchase an investment property.
In addition to this, alternative trends such as rentvesting continue to be a popular way to enter the market.
2017 also held a landmark change to the legislation surrounding property depreciation, with the Treasury Laws Amendment (Housing Tax Integrity) Bill passed by Parliament on the 15th of November.
The new legislation applies to the way plant and equipment assets are claimed by property investors. Those who exchange contracts on a second-hand residential property after 7:30pm on the 9th of May 2017 are now unable to claim depreciation for previously used plant and equipment assets.
It is important to acknowledge that not all investors are affected by these changes. The rules have been grandfathered, which means those who exchanged contracts prior to 7:30pm on the 9th of May 2017 can still claim depreciation as normal.
Capital works deductions for the structural component of a property, which typically make up between 85 to 90 per cent of the total construction cost and therefore the total claimable amount, are unaffected and can continue to be claimed.
Investors who purchase a brand new residential investment, including substantially renovated properties, and commercial property owners and their tenants are also unaffected by the new legislation.
As the New Year approaches it will be more important than ever for investors to do their research, to budget and plan for the future. An essential part of this process continues to be obtaining a comprehensive tax depreciation schedule from a specialist Quantity Surveyor.
Each and every BMT Tax Depreciation Schedule we provide will be tailored to suit an individual’s property investment scenario, ensuring that all deductions are maximised in line with the new legislation.
Although there has been a lot of change it has still been a great year for BMT, delivering thousands of depreciation schedules across Australia. This would not have been possible without your support.
We thank you all and look forward to working with you next year.
From all the team at BMT we wish you a safe and Merry Christmas and a prosperous New Year.