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New Queensland smoke alarm legislation, review now to ensure you remain compliant

BMT team — Fri, 23 Aug 2019 01:28:24 +0000

Queensland households are set to become the safest in Australia thanks to new fire safety regulations rolled out by the government. Let’s take a look at what these changes mean for those with investment properties in this state and also for those considering buying a Queensland property. Contents: What are the changes? When do the rules take effect? What are my obligations as a landlord? What are the obligations of a tenant? Why comply? Smoke alarm rules vary across Australian states and territories What are the changes? New smoke alarm legislation requires all Queensland residences to be fitted with interconnected photoelectric smoke alarms in all bedrooms and hallways connecting bedrooms with the rest of the property and on every level of the dwelling. The new regulations will affect over 450,000 rental properties throughout Queensland and may result in investors paying up to $2,000 for new smoke alarms. The requirements may seem like a negative due to the financial outlay but understanding how you can make this work in your favour by claiming depreciation deductions to reduce your taxable income will help you to capitalise on your investment while also protecting the safety of your tenants. A BMT Tax Depreciation Schedule outlines all the deductions you can claim for your property, including plant and equipment assets such as smoke alarms. The fee for a schedule is 100 per cent tax deductible and the schedule lasts for forty years. Where landlords fail to comply with regulations, they will be unable to rent their property. Fines may apply as well as possible criminal charges. Tenants residing in a non-compliant property are also unable to renew their lease. The Queensland Government Fire and Emergency Services website outlines the benefits of the new smoke alarms: ‘Photoelectric smoke alarms, also known as optical or photo-optical, detect visible particles of combustion. They respond to a wide range of fires but are particularly responsive to smouldering fires and the dense smoke given off by foam-filled furnishings or overheated PVC wiring.’ Interconnected smoke alarms connect to other smoke alarms in the property either through hard-wiring to a home’s mains power supply or wirelessly when battery operated. The result is if one smoke alarm detects smoke, they are all activated. Regulations require that wireless smoke alarms must be non-removable with batteries manufactured to operate the smoke alarm for ten years minimum without a need to recharge. Research shows that photoelectric smoke alarms are superior in quality to standard smoke detectors and have an increased effectiveness across a wider range of home fires. This would lead to an expected increase in the safety of occupants as well as minimising property damage as a result of early detection. When do the rules take effect? In a ten year phased approach, commencing from 1st January 2017, the Queensland government is rolling out changes requiring the installation of interconnected photoelectric smoke alarms over three specific periods. All rental properties are required to meet these requirements by 31st December 2021. Interconnected photoelectric smoke alarms must meet the Australian Standard AS3786–2014 and be installed according to the following dates: What are my obligations as a landlord? Landlords must ensure interconnected smoke alarms are installed and compliant with the new Queensland government requirements by 31st December 2021. Smoke alarms should display the code ‘AS3786–2014’ on the body of the smoke alarm and they can be sourced from hardware stores, electrical retailers or obtained through qualified electricians. Landlords must ensure smoke alarms are placed on the ceiling (where possible) and installed throughout the property as advised above. They must also ensure each smoke alarm has been tested and cleaned within thirty days prior to the commencement of any new lease. This includes renewal or existing tenancy agreement extensions. What are the obligations of a tenant? Tenants must test and clean each smoke alarm at least once a year. This may involve referring to smoke alarm manufacturer instructions where a ‘test’ button on the device may not be visible. Regarding the cleaning of a smoke alarm, this will usually involve vacuuming the device. Why comply? Ensuring your property and the people with it are protected is paramount. Complying with the rules and regulations surrounding the type and installation of smoke alarms will also ensure you can continue to lease and/or sell your investment property and avoid non-compliance penalties. Acting now will ensure you can secure the services of an electrician to install any smoke alarms required. With the looming deadline and approximately 450,000 Queensland rental properties requiring smoke detector installation, it is likely that demand and costs will increase. BMT staff can assist you in reviewing your current circumstances and provide a tax depreciation schedule that includes forecast of eligible claims for depreciable assets and structures. To learn more speak with one of our expert team on 1300 728 726 or Request a Quote online. Smoke alarm rules vary across Australian states and territories Landlords interested in obtaining more information on smoke alarm legislation across Australia can visit Australian smoke alarms regulations and rules for landlords.

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Tax break continues to help small business owners

BMT team — Fri, 09 Nov 2018 03:30:19 +0000

In a move that will help boost cash flow for small business owners, the Senate recently passed legislation to extend the $20,000 instant asset write-off to June 2019. Initially introduced in May 2015, the Australian government originally allowed small businesses with an aggregate turnover less than $2 million to claim a $20,000 instant asset write-off. In March 2017, as part of Treasury Laws Amendment (Enterprise Tax Plan) Bill 2016, the definition of a small business was extended and the $20,000 instant asset write-off was extended to include those enterprises with an aggregated turnover of less than $10 million. During the 9th of May 2017 federal budget, the instant asset write-off was extended until the 30th of June 2018. In 2018, the federal budget proposed to extend the legislation once more and after a long delay between May and September, the extension of the legislation to June 2019 was passed by the Senate on the 12th of September 2018. If you’re planning on using this tax break before the next financial year, it’s important you know exactly how it works. Why not put more money back in your pocket? this is a great time to help upgrade your small business for the long term. Let’s take a look at an example scenario of how one investor can take advantage of the instant asset write-off: Alice is a Chef with a small cafe she runs with her sister Sophie. Their rapidly expanding business is doing extremely well, and they’ve been thinking about purchasing new plant and equipment assets to help their business continue to grow and expand. Alice and Sophie would like to update the old espresso machine, replace their commercial fridge and look at installing a new security system. Alice and Sophie can buy a new espresso machine and take advantage of the $20,000 instant write-off as the new machine will cost them only $5,137 They can also purchase a larger cool room for $7,249, replacing their existing commercial fridge. This will cost less than $20,000 and will also be a valid purchase they can deduct immediately They can also choose to buy a higher end security system for the café and claim an immediate write-off for this item because the purchase price is just $2,229. Learn more: Order a commercial tax depreciation schedule Small business owners can use this instant asset write-off for any depreciable plant and equipment asset or fit-out installed in their business. Other examples of deductible items can range from office furniture, blinds, workstations and light fittings to more specific industry assets such as hospitality, medical or manufacturing equipment. It is more important than ever to work with a specialist Quantity Surveyor to ensure that all asset deductions are identified and claimed correctly under this new ruling. BMT Tax Depreciation can show you how to claim more deductions, pay less tax and see a greater return on your business. Request a quote today for a free estimate of your likely deductions or contact one of our expert staff on 1300 728 726.

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Do the depreciation legislation changes affect me?

BMT team — Tue, 25 Sep 2018 01:23:52 +0000

On 15 November 2017, Parliament passed the Treasury Laws Amendment (Housing Tax Integrity) Bill 2017, which brought about some major changes to ‘plant and equipment’ depreciation claims. Plant and equipment depreciation refers to the deductions an investor can claim for the wear and tear that occurs to the fixtures and fittings located within a property. They are referred to as assets, which are considered by the Australian Taxation Office (ATO) to be easily removed from the property. Investors can claim depreciation deductions for more than 6,000 different ATO recognised assets, such as the carpets, blinds, dishwashers, hot water systems, smoke alarms and ceiling fans. Each of these assets is assigned an individual effective lifespan and depreciation rate by which depreciation of the asset is calculated. The depreciation rates and effective lives of all ATO specified plant and equipment assets differ by each individual asset and even by individual industries. The ATO recognises that plant and equipment items will wear out more quickly than the building itself and will likely need replacing sooner. The legislation changes mean that owners of second-hand residential properties (where contracts exchanged after 7:30pm on 9 May 2017) can longer claim depreciation on existing plant and equipment assets located within their property. However, owners of affected properties can still claim depreciation on the ‘plant and equipment’ assets they purchase for their property directly. It is important to note that there are still thousands of dollars to be claimed by Australian property investors, as there has been no change to ‘capital works’ deductions, or building write-offs, which typically make up between 85 to 90 per cent of an investor’s total claimable amount. Investors who have already purchased prior to this date can continue to claim depreciation deductions as before. It’s more important than ever to work with a specialist Quantity Surveyor to ensure that all deductions are identified and claimed correctly under the new legislation. BMT Tax Depreciation will show you how to claim more deductions, pay less tax and see a greater return on your investments. BMT Tax Depreciation schedules are designed specifically for ease of use by Accountants to incorporate depreciation deductions into an investors’ income tax assessment. All information is prepared in full compliance with ATO regulations, meaning that deductions are detailed and evidenced correctly in the event of an audit. Alternatively, you can contact one of our expert staff on 1300 728 726 for a free estimate of available deductions. Find out more about the 2017 depreciation legislation and how this applies to a range of property investment scenarios.

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