The current Federal Government economic incentives will allow companies to claim 50% depreciation allowances on new Plant & Equipment during the first year of installment effective from 12 March 2020 to 30 June 2021.

The existing depreciation rules will apply for the remaining life of the assets. Business owners with a turnover of less than $500 million will be eligible. The depreciation allowances apply to new Plant & Equipment assets only – excluding second-hand assets or buildings, and other capital works.

These new measures give many organisations the opportunity to invest more in equipment to increase efficiencies and replace ageing equipment.

“Business owners and tenants will need a comprehensive asset register to keep track of inventory both as a requirement of their lease, and to claim depreciation,” said National Director, Paul Mazoletti.

“This can be complicated especially where there are shared assets such as in the case of private hospitals. Our Commercial tax team inspects each commercial property and thoroughly reviews leases to determine ownership and values. Our qualified and experienced Quantity Surveyors understand the complexity of commercial contracts and work with owners and tenants to deliver the best outcome for their business,” said Paul.

In many cases, plant & equipment items will require replacing long before the end of their “expected life” as designated by the Australian Taxation Office. In these situations, business owners and tenants can claim allowances for Write offs from demolished or destroyed assets.  This coupled with depreciation allowances for Plant and Equipment typically between 25 to 30 percent of the construction cost, will give business owners and tenants greater control of their cash flow through reduced taxes.

Please contact our team if your business is seeking assistance.

Call Napier & Blakeley today for assistance with your Tax Depreciation Schedule or any other Napier & Blakeley services at any of our offices below:

	BRISBANE Paul Mazoletti National Director o.  07 3221 8255 m. 0408 749 202 e.  pmazoletti@napierblakeley.com		SYDNEY Peter Osborn Director o.  02 9299 1899 m. 0439 765 571 e.  posborn@napierblakeley.com
	BRISBANE Kath Hemphill Business Development Manager o.  1300 730 382 m. 0409 722 709 e.  khemphill@napierblakeley.com		MELBOURNE John Mathew Director o.  03 9915 6300 m. 0414 559 326 e.  jmathew@napierblakeley.com

For 34 years Napier & Blakeley have been providing the following services to the property industry:

• Property Acquisition & Disposal Technical Due Diligence
• Property Development Due Diligence
• Quantity Surveying
• Capital Expenditure Forecasting
• Make Good Reporting
• Energy Management
• Development Monitoring
• Property Tax Depreciation