Many owners of physiotherapy clinics are unaware that the Australian Taxation Office allows them to claim depreciation deductions based on the wear and tear of their building and the plant and equipment assets contained in the property.
As such, many physiotherapy clinic operators are losing thousands of dollars annually by failing to have a tax depreciation schedule prepared for their property.
Items commonly found in physio clinics including treatment beds, resistance training machines, cardiovascular training machines and computer equipment are all depreciable, as are other more generic assets such as air conditioning units, freestanding furniture, flooring, signing and security systems.
It’s essential to contact a specialist Quantity Surveyor such as BMT Tax Depreciation to arrange a tax depreciation schedule to ensure the available deductions for these items can be claimed.
The following is an example of the deductions we found for an owner of a physiotherapy clinic purchased for $620,000.
As this example shows, the depreciation deductions for this type of property can be quite substantial and should not be overlooked.
In the first full financial year alone, the owner of this property could claim $19,500 in depreciation deductions.
Over the life of the property, the owner was able to claim $311,700.
As part of the process of arranging a depreciation schedule for any commercial property – including physiotherapy clinics – our specialist staff will perform a site inspection to uncover the structural and fixed items which can be claimed as capital works deductions, as well as all of the removable plant and equipment assets contained within the property.
They will also uncover any renovations that have been completed to the property, even those completed by a previous owner.
If a physiotherapy clinic owner is intending to undertake any renovations in the near future, is also important to be aware that they may be able to claim additional deductions for this.
A depreciation schedule should be arranged prior to commencing any renovation work and updated after the renovation is complete. This will ensure the owner can claim deductions for the remaining un-deducted depreciable value of any assets scrapped and removed during the renovation and also include deductions for newly installed assets.
To learn more about claiming depreciation for any commercial property, visit our commercial property depreciation page.