Quantity Surveying
Capital Allowances Schedules

What is Property Depreciation?

Rates for Tax Depreciation
  Industrial Buildings
Rate Date
2.5%
4%
2.5%
4%
 20th July 1982 - 21st Aug.1984
22nd Aug.1984 - 15th Sept.1987
16th Sept.1987 - 26th Feb.1992
27th Feb.1992 - present day
  Non-Residential
Rate Date
2.5%
4%
2.5%		 20th July 1982 - 21st Aug.1984
22nd Aug.1984 -15th Sept.1987
16th Sept.1987 - present day
  Residential
Rate Date
4%
2.5%		 18th July 1985 - 15th Sept.1987
16th Sept.1987 - present day
  Traveler Accommodation
Rate Date
2.5%
4%
2.5%
4%		 21st Aug.1979 - 21st Aug.1984
22nd Aug.1984 - 15th Sept.1987
16th Sept.1987 - 26th Feb.1992
27th Feb.1992 - present day
  Traveler Accommodation
Rate Date
2.5% 27th Feb.1992 - present day
These rates and dates are accurate at the time of publishing. Each property will have different rates of depreciation according to the above periods of commencement of construction and the type of building. For more information call 1300 882 401

The Income Tax Assessment Act 1997 (the Act) provides income tax relief by reducing assessable income through depreciation allowances. Division 40 and 43 allow depreciation to be claimed as an allowable deduction.

For the purpose of the Act, depreciation is a means of allocating the cost of a unit of property over its effective useful life by means of periodic changes against revenue.

Who can claim Depreciation (Division 40)?

Depreciation is allowed on any property, both new and second-hand. To qualify for depreciation, the following conditions must be satisfied:

  1. The property must be owned by the taxpayer
  2. The property must be used for the purpose of producing assessable income, or be installed ready for use for that purpose

Who can claim Building and Structural Improvement allowances (Division 43)?

To qualify, the following conditions must be satisfied:

  • The building must be used for the purpose of producing assessable income
  • The building construction must be commenced after 19th July 1982 and for structural improvement, commenced after 27th February 1992

Rates for Tax Depreciation

The rate allowance can vary and depends upon the construction commencement date of the property (see table opposite).

As the Income Tax Assessment Act continues to grow in complexity, tax depreciation advice has increasingly developed into a specialisation, requiring not only detailed knowledge of the Act but expert knowledge of building costs.

The LMW QS team specialises in research relating to building tax. Their knowledge will ensure maximum tax deductions and returns on your or your clients property investments.

Valuation Services

LMW have been servicing the Finance, Property Development industries and the general public for over 20 years. We are proud of our reputation as leading Valuation and Quantity Surveying experts throughout Australia.

LMW QS is a wholly owned subsidiary of LandMark White Group. Through its subsidiary companies LMW Group provides independent, professional and soundly researched valuation and consultancy advice with an emphasis on client service.

When do you need an expert Valuation?

  • Mortgage finance purposes
  • Re-development/subdivisions/ units development
  • Family settlements
  • Capital Gains Tax
  • Acting for Purchasers/Vendors
  • Business assets review/Portfolio Valuation and Analysis
  • Insurance - replacement/reinstatement
  • Municipal Valuations
  • Rental Valuations
  • For settling disput