Capital Allowances

Season’s Greetings from Napier & Blakeley

santa-present-beach-reduced2016 was quite an incredible year with significant global change and with it, new opportunities opening up for us here in Australia.

It was also another busy year for Napier & Blakeley, with our independent trusted advisory services again being in great demand from both local and offshore clients investing in Australia and SE Asia.

In 2016, we managed client projects across all states and territories of Australia and also in Singapore, Hong Kong, Indonesia, Sri Lanka, Fiji, The Maldives, Guam and New Zealand.

We would like to say a big thank you to all of our clients and send all of you and your families our Season’s Greetings.  We look forward to working with you again and to a successful and prosperous 2017 for all.

Our offices will close at 5pm on Friday 23rd December and reopen on Monday 9th January.

Should you have any urgent business during that time, please contact our Managing Director, Alastair Walker on 0419 503 289 or at Continue reading

Capital allowances: draft effective lives of assets used in car parking and the parking services industry

The ATO has just released below New Effective Lives of Div.40-95 plant on Operating Plant with regards to Carparks.

Our National Tax Director, Paul Mazoletti is pleased to advise he will review over the Christmas break and respond to the ATO with comments accordingly.

In the meantime please ensure you all have a safe holiday and lovely Christmas on behalf of the team at Napier & Blakeley.

Proposed new determinations

They propose to add the following list of effective life determinations to the Commissioner’s schedule to apply to assets purchased (or otherwise first used or installed ready-to-use) on or after 1 July 2016 (within the meaning of section 40–95 of the Income Tax Assessment Act 1997). Continue reading

Capital Allowances: Draft Effective Lives of Assets used in Transfer Stations and Landfill Services

The following is a recent release from the ATO and their understanding of new Effective Lives which can now be used for depreciation purposes, effective from July 2015 for the Transfer Station and Landfill industry sectors.

They are seeking comments on a draft list of Effective Lives they are releasing for assets used in Transfer Stations and Landfill services.

Proposed new determinations

They are proposing  to add the following list of Effective Life determinations to the Commissioner’s schedule to apply to new assets either purchased and first used, or installed ready to use, on or after 1 July 2015 (within the meaning of section 40-95 of the Income Tax Assessment Act 1997). The effective life listed below for each asset basically determines the depreciation rate e.g.: 20 life years = a basic rate of 5% per annum can be claimed on the cost of the item to the income producing taxpayer.

Capital Allowances table

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CAPITAL ALLOWANCES UPDATE: TR 2013/4 New effective lives of depreciable assets – Applicable from July 1 2013

If you enjoy keeping up to date with the tax laws, the following will interest you!  This new ruling and determination is issued as part of an ongoing review of the Commissioner’s effective life determinations. Taxpayers use ‘effective lives’ to work out how much they can claim as a tax deduction for an asset’s decline in value (depreciation deduction).

The Commissioner has made a determination of the effective life of certain depreciating assets. This will take effect from 1 July 2013. If you have your property or business in the following ANZIC categories this will affect reporting on your new purchases after July 1 2013 of Division 40 Plant/Assets.

Industries and industry activities affected are:

  • Ammonia and ammonium nitrate manufacturing (fertiliser, dyes, herbicides)
  • Meat processing (beef, pig & sheep abattoirs – not chicken)
  • “Non-ferrous metal casting (aluminium)
  • Pet food manufacturing (canned, bird feed, cereal for fodder, sheep lick)
  • Prefabricated concrete manufacturing (precast walls, panels)
  • Sanitary paper product manufacturing (toilet paper, tissues, napkins)

Determinations made by The Commissioner for the effective life and depreciation assets, has been applied for the purpose of provisions under division 40, which will be effective in the life of depreciating assets. This will be used to work out the assets decline in value. Continue reading

End of Year Investment Property Tax List

Let us assist you with depreciation tax deductions on your investment property and we will guarantee a happy new financial year for you.

Why pay too much tax ? and improve your cash flow at the same time, it’s a no brainer !

It’s the end of financial year again and if you own investment property, you should claim the available depreciation and building allowance deductions.

If you are not sure what to claim we will assist you, no matter how large or small your investment property is, we have analysed every type of property and can guarantee that we will generate significant tax saving for you and that the payback on our fees will be very short and maybe only a matter of months. Continue reading

Property Depreciation and Natural Disasters

Over the last 6 months, with the unfortunate spate of different Natural Disasters occurring Napier & Blakeley have been requested from numerous clients what effect does it have on their existing and future capital allowances for their investment properties.

The question arises where funds from a third party such as an insurer pays for capital works.

No Insurance 
Where there is no insurance claim, then all demolished capital items may be written off from the date of demolition.  All newly installed and refurbished costs may be claimed once works have been completed.
Tip – ensure you keep all records of expenditure including all associated on costs such as skip hire, professional fees and the like. 

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