Maximise deductions with depreciation

According to a recent release by the Australian Taxation Office (ATO), 2.5 million property investors claimed deductions relating to their rental property in the 2011-2012 income year.

Of these investors, just over 1 million received an average capital works deduction of $2,029 while just over 1.7 million investors claimed an average deduction of $1,139 for plant and equipment, making the total average depreciation claim made by property investors in the 2011-2012 income year $3,168.

In comparison, data collected from thousands of BMT Tax Depreciation Schedules suggests the average claim should be around $10,100 in the first full financial year and $7,350 per year on average over the first ten years of owning a property.

Investors who are unsure whether they are claiming the maximum depreciation deductions available to them should call BMT Tax Depreciation on 1300 728 726 for a free assessment of their likely deductions.

Article provided by BMT Tax Depreciation. Bradley Beer (B. Con. Mgt, AAIQS, MRICS) is the Managing Director of BMT Tax Depreciation. Please contact 1300 728 726 or visit for an Australia-wide service.