» hotel depreciation

Our restaurant depreciation guide to help you claim thousands

BMT team — Mon, 21 Feb 2022 23:45:24 +0000

When it comes to providing customers with a high-quality dining experience, good food and service is only part of the equation. It is equally as important for a restaurant to make a great physical impression on diners; they will pay attention to the general ambience and the overall quality of items such as furniture, artwork and even the cutlery and glassware. For this reason, restauranteurs often outlay hundreds of thousands of dollars to create an impressive restaurant that will leave diners with a good taste in their mouth. Fortunately, many of the fit-out costs can be recouped through depreciation deductions. Depreciation is the wear and tear that occurs to a building and the items within it over time. The Australian Taxation Office allows commercial building owners and tenants to claim the wear and tear of the property’s structure and fixed items (capital works) as well as for the easily removable items within the property (plant and equipment). This means that restauranteurs can claim depreciation deductions for many assets installed during the fit-out of a restaurant. And many are surprised at just how lucrative these deductions are. The following case study shows just some of the restaurant depreciation deductions that can be claimed for common assets. Case study: Hotel A has recently changed hands. Among several other things, its facilities include a fine dining restaurant. The following table shows the plant and equipment deductions from the restaurant that are available to the new owners. The available restaurant depreciation deductions add up to an impressive $51,548 in the first financial year. Given that the hotel is a medium business and settlement took place in 2022, the new owners are entitled to the instant-asset write off. Not only does this make a significant impact on the restaurant’s cash flow, but the efficiencies resulting from the new fit out can reduce the operational costs of the restaurant. To ensure that restaurant depreciation deductions are maximised, contact a specialist quantity surveyor to arrange a comprehensive tax depreciation schedule, which will outline the deductions available for every eligible asset. A BMT Tax Depreciation Schedule applies all industry-specific legislation to ensure commercial depreciation deductions are claimed to their full potential and compliantly. BMT also applies current business incentives including the backing business investment and temporary full expensing depending on the business size, to ensure every cent is claimed. To learn more about the restaurant depreciation deductions available in a restaurant, pub, or café, visit the commercial property depreciation page on the BMT Tax Depreciation website. Disclaimer: The information provided in this article is based on restaurant size, date of acquisition, size of business entity etc. This information is not to be used as a quote or guaranteed tax depreciation amount. Contact BMT for a specialised tax depreciation schedule.

The post Our restaurant depreciation guide to help you claim thousands appeared first on .

Australian boutique hotels provide the perfect getaway

BMT team — Tue, 14 Apr 2020 01:25:04 +0000

Australia is filled with boutique hotels offering one-of-a-kind experiences for you and the family to enjoy. While the current climate is stopping us from visiting such special locations, we can still put them on the top of our list for a time where we can have a relaxing break with our families and support local business. From the tranquil East Coast of Tasmania to headlands boasting some of our most beautiful forests in Queensland, here are five of the most unique and secluded hotels in Australia. 1. White Sand Jervis Bay – NSW 2. Lon Retreat – VIC 3. The Jetty – SA 4. Piermont Retreat – TAS 5. Thala Beach Nature Reserve – QLD Boutique hotels depreciate 1. White Sand Jervis Bay – NSW If you’re looking for a holiday amongst nature’s finest, you should consider the award-winning White Sand Jervis Bay on the NSW South Coast. Boasting architecturally designed villas and a prestigious beach house, you will have plenty of time and space to explore the white sand beaches and enjoy uninterrupted views. White Sand Jervis Bay is the perfect destination for anyone wanting to escape the hustle and bustle of the city and feel rejuvenated. 2. Lon Retreat – VIC Hidden away on a hill by the ocean, Lon retreat features seven luxurious suites in Point Lonsdale on the Bellarine Peninsula. Each suite is individually designed with sweeping views of the natural surroundings. The property where Lon Retreat stands was originally a family farm. The owners opened the doors in 2018 as a home-hotel and continue to be inspired by making the retreat somewhere you can reconnect through offering beautiful experiences and keeping things simple 3. The Jetty – SA Offering luxury beachfront accommodation in Port Willunga, The Jetty is the perfect all-year-round holiday destination, with three separate and uniquely designed apartments. Featuring a truly special experience, your doorstep is just minutes away from Port Willunga beach, while McLaren Vale’s world-class vineyards are also close by. 4. Piermont Retreat – TAS Located in remote East Coast Tasmania, the Piermont Retreat is a peaceful sanctuary amongst rich wildlife. Piermont allows guests to carve their own stay, where they can choose to rest or explore. Time can be spent discovering their unspoilt surroundings or unwinding in the stone cottages enjoying the glimmering bay views. Piermont Retreat has been run by the same family for 25 years and they pride themselves on the exceptional experience they provide for their guests. 5. Thala Beach Nature Reserve – QLD Located in private headland between Cairns and Port Douglas, this deluxe eco accommodation is nestled on the resort’s 145 acre property. You can spend your time dining in the treetops, star gazing and walking among nature and wildlife. With names such as the Coral Sea and Jungle Walk Bungalow, you know you’re in for a very special stay that combines comfort with pristine natural surrounds. Boutique hotels depreciate While boutique hotels are truly one-of-a-kind, there are plenty of depreciation deductions available. Property depreciation is the wear and tear of buildings and assets over time. The Australian Taxation Office (ATO) allows owners of income-producing properties, including boutique hotels, to claim this depreciation as a tax deduction. Find out more about boutique hotel depreciation including a case study of likely depreciation deductions. BMT Tax Depreciation has been the most trusted depreciation specialist for over twenty years. They understand every commercial property is different and ensures every depreciable asset is claimed. Boutique hotels can use depreciation to maximise their cash flow as they continue to provide unique experiences for the community. To learn more about depreciation, contact the expert BMT Team on 1300 728 726.

The post Australian boutique hotels provide the perfect getaway appeared first on .

Boutique hoteliers can boost their cash return with depreciation

BMT team — Tue, 04 Feb 2020 21:43:26 +0000

Boutique hotels are fast becoming the top choice for trendy travellers in 2020. With quirky charm and niche décor, they generally offer between 1 to 100 rooms. From charming rural settings to seaside bungalows, boutique hotel accommodation can be found all across the country and in various forms. For hoteliers, keeping up with the latest design trends and accommodating for modern travellers can be costly so it’s important to be aware of any taxation benefits on offer. You may be eligible to claim hundreds of thousands of dollars in property depreciation deductions. In this article we will consider: Depreciation and accommodation Boutique hotel depreciation case study Depreciation and accommodation Property depreciation refers to the wear and tear of a building and the assets contained within it. The Australian Taxation Office (ATO) allows owners of income-producing buildings to claim depreciation for two categories: capital works depreciation and plant and equipment assets. Capital works refers to the deductions available for the building’s structure and items deemed to be permanently fixed to it such as bricks, mortar and staircases. The owner of traveller accommodation, which refers to a hotel, motel or guest house with ten or more rooms, can claim capital works deductions at a rate of either 2.5 per cent or 4 per cent. Owners who purchase short term traveller accommodation constructed between 21 August 1979 and 21 August 1984 are eligible to claim capital works deductions at a rate of 2.5 per cent for forty years. This is also the case for properties constructed between 16 September 1987 and 26 February 1992. Owners of traveller accommodation constructed from 22 August 1984 to 15 September 1987 allow owners to claim at a rate of 4 per cent over twenty-five years. For properties constructed after 26 February 1992, the rate is also 4 per cent. Plant and equipment assets are items that can be easily removed from the property such as flooring and furniture. Depreciation deductions for these assets are calculated based on each item’s individual effective life as set by the ATO. Plant and equipment assets are items that can be easily removed from the property such as flooring and furniture. Depreciation deductions for these assets are calculated based on each item’s individual effective life as set by the ATO. Boutique hotel depreciation case study See how a hotelier claimed $18,738 in the first financial year alone for just one section of their property. In this scenario, the owner is claiming depreciation for a fifty-room boutique hotel featuring a rooftop beer garden. The table below shows just a few of the depreciation deductions available for the plant and equipment assets found on the rooftop: The boutique hotelier can claim a first-year deduction of $18,738 for the rooftop beer garden with an additional $78,138 worth of un-deducted value remaining. Given there would be several more depreciable assets within the hotel, along with capital works deductions, the claim is likely to be significantly higher. The easiest way to ensure you claim maximum depreciation deductions for your boutique hotel is to contact a specialist Quantity Surveyor to prepare for a tax depreciation schedule. A BMT Tax Depreciation Schedule outlines all eligible deductions available over the lifetime of your property and is 100 per cent tax deductable. To learn more about BMT Tax Depreciation or to order a schedule, contact 1300 728 726 or Request a Quote today. You might also enjoy: 6 hotels offering a unique travel experience Pub, hotel and tavern owners can tap into depreciation deductions too Hotel freehold vs leasehold – what does this mean for depreciation?

The post Boutique hoteliers can boost their cash return with depreciation appeared first on .

6 hotels offering a unique travel experience

BMT team — Thu, 16 Jan 2020 22:11:46 +0000

The hotel industry is everchanging to cater to the needs of the modern-day traveller. Hotel guests no longer want a simple place to rest their head. Instead, they want an experience. No hotel is too unique to reap the benefits of tax depreciation. If you own or operate a hotel, no matter how remote the location or small the structure, you could be entitled to hundreds of thousands of dollars in depreciation deductions. From the architecturally grand to the completely obscure, here are six unique hotels changing the game. 1. Freycinet Lodge – TAS Freycinet Lodge is for travellers who want to immerse themselves in nature. Nestled on the edge of Freycinet National Park on Tasmania’s east coast, this eco-lodge boasts a location that is second to none. The luxury development consists of nine architecturally designed pavilions with stunning views of the national park and coastline. The accommodation is both intimate and expansive with the top of the range pavilions featuring floor-to-ceiling glass windows and natural timber walls. 2. The Collectionist Hotel – NSW The Collectionist Hotel prides itself on choice. No two rooms are the same in this eclectic Sydney hotel and guests have the option to choose their interior upon arrival. There are no basic beige walls or stock standard white sheets to be found here. With a collection of 39 custom designed rooms and interiors, guests are encouraged to ‘choose different’. The Collectionist Hotel is a collaboration between four Australian design studios and is the perfect antidote to cookie cutter design. 3. Alkira – VIC Travellers looking for a truly unique experience should take note of Alkira Eco-Glamping Retreat. This snug straw-bale yurt can be found on a 40-acre property in Emerald, Victoria. As a part of the stay, guests can explore the surrounding farm and soak up the pristine natural surrounds. 4. COMO The Treasury – WA COMO The Treasury is a Perth-based hotel featuring 48 elegant guest rooms and suites which boast original high ceilings, cornicing, and balconies. Set in a 19th-century former government building, the hotel uses a simplistic colour palette to capture a sense of serenity in heart of the city. Guests can enjoy two restaurants, a bar, lounge, library and 20 metre indoor pool. 5. Longitude 131 – NT It doesn’t get much better than this when travelling to the red centre. Longitude 131° has some of the best views of Uluru. It should come as no surprise as the hotel’s name refers to the precise location of the famed natural landmark. Each room has a tent-like interior and full-length windows so guests can admire the incredible desert expanse. 6. Notel – VIC Notel consists of six airstream trailers positioned speak-easy style on the roof of a nondescript Melbourne car park. True to form, it’s called Notel because it’s like no other hotel. The retro trailers, which are similar to tiny homes, have been fully renovated and are bursting with bright pink décor. It’s easy to see why this hotel is a hot spot for Instagram influencers and trendy travellers. No hotel is too unique to claim depreciation As a building gets older and items within it wear out, they depreciate in value. The Australian Taxation Office (ATO) allows owners of income producing property, including hotels, to claim deductions related to the building’s structure as well as the plant and equipment items contained within the property. Capital works refers to the deductions available for the building’s structure and items deemed to be permanently fixed to it such as bricks, mortar and staircases. The owner of a commercial property in which construction commenced after the 20th of July 1982 can claim these deductions at a rate of 2.5 per cent. Unlike capital works, there are no date restrictions for depreciating plant and equipment assets in commercial properties. Depreciation deductions for these assets are calculated based on each item’s individual effective life as set by the ATO. Discover the tax depreciation deductions your hotel accommodates here. As Australia’s leading property tax depreciation specialist, BMT Tax Depreciation understand that every commercial property is different. Using industry specific legislation, a specialist site inspector will assess your hotel to ensure every deduction is uncovered and maximised. This includes any fit-out installed or assets removed during a renovation. To find out more, visit bmtqs.com.au or speak to the expert team at 1300 728 726 today. You might also enjoy: Hotel freehold vs leasehold – what does this mean for depreciation? Pub, hotel and tavern owners can tap into depreciation deductions too Hotels, motels and B&Bs – the benefits of investment

The post 6 hotels offering a unique travel experience appeared first on .

Hotel freehold vs leasehold – what does this mean for depreciation?

BMT team — Fri, 06 Jul 2018 00:07:19 +0000

When hoteliers request a tax depreciation schedule for their property, there are usually three main scenarios: Freehold, which is where the client owns the building only, not the business that operates from it Leasehold, where the client owns the business only, not the actual property The client owns both the business and the building Depending on which of these situations apply, how depreciation can be claimed will vary. Let’s consider how depreciation can be applied in each of these situations. It’s important to remember that for any commercial property, both the tenant and the landlord or owner are eligible to claim depreciation. Contents: Scenario 1 – Freehold Scenario 2 – Leasehold Scenario 3 – The client owns both the business and the building How a tax depreciation schedule can help Scenario 1 (Freehold) In a freehold scenario, the client owns the actual building or the property, but the not the hotel business that operates from it. As such, they are generally entitled to claim the capital works deduction, which relates to the structure of the building, as well as any fixed assets they own as landlords which may include items such as hot water systems, air conditioning systems and carpets. They will not be entitled to claim depreciation deductions for any plant and equipment assets owned or installed by the hotel operator. This may include assets such as furniture, linen and cutlery. As legislated by the Australian Taxation office (ATO), the owner of any commercial building or hotel constructed after the 20th of July 1982 will be able to claim the capital works deduction over a forty-year period. Depending on the date of construction, either 2.5 per cent or 4 per cent of the property’s historical construction cost per year can be claimed as the capital works deduction. Scenario 2 (Leasehold) In this situation, the client owns the business only; not the actual building. As such, they can be viewed as the “tenant”. BMT Tax Depreciation has found that in most situations like this the client has purchased an already established and operating business. Whether they have purchased an established business or have started it from scratch, they would be able to claim depreciation for any plant and equipment assets they own or any new assets purchased for the hotel fit out. This may include assets such as bedding, linen, tables and chairs, reception furniture, glassware and cookware. These assets all have an effective life and will depreciate at a set rate, as determined by the ATO. Being in a leasehold agreement, they will not be able to claim the capital works deduction, as this sits with the building owner. Nor will they be able to claim any plant and equipment assets owned by the owner or landlord. Scenario 3 – They own both the business and the building Usually (but not always) in this scenario, there are separate entities to take into consideration. There may be one entity that owns the building, perhaps a trust, and another that owns the business and any associated plant and equipment assets. The same rules as above would apply when claiming depreciation in this scenario. The benefit is that overall, they would be eligible to claim both the capital works deduction and depreciation deductions for plant and equipment assets. How a tax depreciation schedule can help When a property owner and hotel operator are both claiming depreciation for various assets in the same building, things can quickly get confusing. It can be hard to determine who owns what and what each party can legally claim depreciation for. There is where the value of a professional Quantity Surveyor is realised. A Quantity Surveyor will help either or both parties identify the assets they’re legally entitled to claim deprecation for and will maximise the depreciation deductions available for both parties. This will also help ensure legal compliance when it comes to claiming depreciation, in the case of an ATO audit. If either of these scenarios apply to you as a hotel owner or operator, you can visit our commercial property depreciation page for more information.

The post Hotel freehold vs leasehold – what does this mean for depreciation? appeared first on .

Can you claim depreciation for an older hotel?

BMT team — Fri, 18 May 2018 01:03:24 +0000

One of the main reasons hotel owners fail to take advantage of depreciation deductions is because they believe their hotel is too old to warrant making a claim. According to Bradley Beer, the Chief Executive Officer of BMT Tax Depreciation, this myth is seeing hotel owners lose out on thousands of dollars each year and needs to be dispelled. “Often investors make the mistake of thinking they will not receive deductions for an older property due to the date restrictions the Australian Taxation Office (ATO) place on claiming the available capital works allowance,” said Mr Beer. “The reality is that any hotel, no matter how old the building is, will entitle its owner to valuable deductions in the form of depreciation. “This is largely because the owner is also entitled to claim depreciation for any renovation work that has taken place since the qualifying date as well as for the plant and equipment assets contained within the property,” said Mr Beer. Although current ATO legislation states that the owner of any commercial property built before the 20th of July 1982 cannot claim the capital works allowance as a deduction, depreciation of plant and equipment is not restricted by age. It is the condition and quality of each item which contributes to the depreciable amount. Capital works and renovations Older hotels will have often had some form of renovation work completed to them after the legislated dates set by the ATO. This may be minor renovations to particular rooms, work to the hotel’s structure or a large-scale renovation. This may include things such as replacing the roof, replacing retaining walls, adding a garage, balcony or pool, or installing new floor and wall tiles as part of a bathroom remodel, for example. If any such renovation work was completed after the qualifying date, they will attract the capital works allowance. Depreciation of plant and equipment items A tax depreciation schedule not only covers the capital works allowance, but also the depreciation of plant and equipment items. Plant and equipment assets are considered to be the “removeable” fixtures and fittings in a property. There are many plant and equipment items in hotels that will attract a depreciation claim. This would include everything from bedding, tennis court nets, pool accessories, crockery and cutlery, furniture, curtains, carpets, light fittings and computer equipment, to name just a few. So even if a hotel is too old to claim the capital works allowance, there will likely still be thousands of dollars worth of deductions to claim from the plant and equipment assets contained within, as the depreciation of these assets is not restricted by age, but rather the condition and quality of each individual asset, as determined by the ATO. It’s always worth enquiring about depreciation When in doubt, hotel owners should always seek expert advice, as it’s likely that they will always have some form of depreciation to claim whether it be from capital works, renovations or plant and equipment assets. A specialist Quantity Surveyor will perform a site inspection of the property to identify any deductions available from plant and equipment assets and for renovations that have been completed to a property of any age. The depreciation claim from these sometimes unexpected assets can help a hotel owner’s cash flow tremendously. And as depreciation is a non-cash deduction, the owner or investor does not need to spend any money in order to claim it.

The post Can you claim depreciation for an older hotel? appeared first on .

Discover the tax depreciation deductions your hotel accommodates

BMT team — Thu, 04 Feb 2016 22:27:26 +0000

A recent property outlook by Colliers International and JLL Hotels and Hospitality Group has predicted that 2016 will be another robust year for Australian hotel owners. According to John Kenny, the Chief Executive Office of Colliers International Australia and New Zealand, strong consumer confidence is driving demand resulting in increased hotel real estate activity during 2015 and this is expected to continue in 2016. “Confidence is having a positive impact across the property sector and this optimism is starting to flow through to several of our occupier markets, as businesses become more confident,” he said. As demand for hotel properties grow, it is important that owners of these types of properties understand the tax depreciation deductions they are entitled to claim. Often the owners of these types of properties fail to claim all of the tax depreciation deductions they are entitled to. By failing to take advantage of the maximum deductions available, hotel owners could potentially be missing out on thousands of dollars. What is tax depreciation and how will it assist hotel owners? The Australian Taxation Office (ATO) allows the owners of income producing properties to claim tax depreciation deductions relating to the wear and tear of the building structure and the plant and equipment assets it contains. By claiming tax depreciation, hotel owners essentially will reduce their taxable income, therefore they will pay less tax. What’s more, the fee to obtain a tax depreciation schedule outlining all of the deductions available to be claimed is 100 per cent tax deductible. View a detailed case study on our website and see the difference a tax depreciation schedule can make to a hotel owner’s cash flow. Learn more: Tax depreciation that’s more accommodating Below are just some examples of the tax deductible items hotel owners may be able to claim: Air conditioners Carpets Furniture Laundry assets (in rooms) Swimming pool assets Beds and bedding Ceiling fans Safes Tennis court nets Blinds Heaters Refrigerators Televisions Beer dispensing equipment Crockery and cutlery Hot water systems Fire extinguishers Spa bath pumps Trolleys To learn more about the depreciation deductions you can claim for your hotel, speak to one of our expert staff on 1300 728 726 today.

The post Discover the tax depreciation deductions your hotel accommodates appeared first on .