News

Recent amendments to property depreciation legislation have now passed through parliament and become legislation.

What does it all mean?  Well basically owners that purchased a SECOND HAND residential investment property (where contracts exchanged place AFTER 7.30pm on the 9th May 2017) will be unable to claim depreciation on existing plant and equipment assets, removable and mechanical assets.  These are items such as air-cons, blinds, hot water units, dishwashers etc). 

There has been no change to 'capital works' deductions - depreciation to the fixed structure of the property.  These items can continue to be claimed.   This is the actual building such as doors, roofs, basins, windows, retaining walls etc.

This is good news as these deductions typically take up to 85% to 90% of total depreciation claims.

Additional assets that the new owner purchases for the property can be claimed as before.

Commercial property owners and those purchasing new homes are unaffected and can continue to claim for both.

To find out more, visit BMT here, or to view their short video explaining the changes, click here.