Issue 38 2015

Missed deductions add up

Our system to maximise your claim

Closed circuit television systems, garden watering systems, intercom systems and solar powered generating system assets are all assets which are often missed by property investors when claiming depreciation.

These and other missed assets such as door closers, freestanding bathroom accessories, garbage bins, shower curtains and smoke alarms are part of a list we have compiled to help investors avoid missed depreciation deductions.

Although many of these items have a low depreciable value, as shown in the following table, the depreciation deductions which can be claimed for these items can add up to thousands of dollars for an investor.

Asset
Depreciable value
Depreciation
deductions - Year one
Ceiling fans *$265 $265
Clocks - electrical *$20 $20
Door closeres *$185 $185
Exhaust fans *$125 $125
Freestanding bathroom accessories *$110 $110
Garbage bins *$250 $250
Garden sheds - freestanding **$855 $160
Smoke alarms *$145 $145
Closed circuit televisions system $1,550 $775
Garbage disposal units **$455 $85
Garden watering systems **$558 $105
Intercom systems **$745 $140
Solar powered generating system assets $5,500 $550
Spa bath pumps **$425 $80
Window shutters - automatic **$800 $150
Total $11,988 $3,145
Key: Common assets often missed More obscure assets rarely claimed

Assumptions and Disclaimer

The depreciation deductions within this table have been based on the diminishing value method of depreciation and are based on a first full financial year claim.

*Assets which have a depreciable value of $300 or less can be written off as an immediate write-off in the first full financial year claim.

** These assets which have a value of $1,000 or less can be added to the low-value pool and depreciated at a rate of 18.75% in the first year.



So here’s our system to help investors ensure no item is missed and to maximise their depreciation deductions:

  • Take note of the assets included in the above table
  • If you have a depreciation schedule and you own any of these assets, confirm with your Accountant that they are included in your schedule and your depreciation claim. If items have been missed, the Australian Taxation Office will allow you to go back and amend the previous two years of missed deductions
  • If you don’t have a depreciation schedule you should talk to a specialist Quantity Surveyor as soon as possible
  • Ensure your specialist Quantity Surveyor can outline the deductions available for assets which are eligible to be written off immediately or added to the low-value pool

A specialist Quantity Surveyor will use their expert knowledge of tax legislation to ensure the maximum deductions are claimed for each individual asset.