will provide specialised advice in relation to the efficient operations and lifecycle management of building assets including the identification, development, facilitation and validation of sophisticated and innovative financial and engineering solutions designed to reduce operational costs, manage risk, improve yield and increase asset values.

The acquisition strengthens Napier & Blakeley’s existing position in its world class provision of property due diligence services as well of benchmarking buildings for energy efficiency, operational performance and future capital expenditure. It also sets Napier & Blakeley apart in the use of the unique IT based platform.

Napier & Blakeley Emancium will be closely integrated with the Napier & Blakeley business, but will trade as a separate entity within the group – as it comes with software developed to not just collect data on buildings, but also store it within a secure cloud based environment.

Once stored, our subscribing customers can access the data which can then be analysed and applied in many different ways. Importantly, the flexibility of the system allows for simple updating of information specific to a building. This enables the avoidance of the often used spread-sheet for data retention, which very quickly becomes out of date when multiple copies are distributed and used by various stakeholders.

One sweep of a building using the Emancium tool will enable the production of:

• Asset registers with photographic, location and bar-code identification 
• Energy and performance benchmarking for equipment and systems 
• Detailed tax depreciation reporting 
• Replacement cost assessments for insurance purposes 
• Detailed condition audit per item 
• Future capital expenditure forecasts – on an item and system basis 
• Current operating costs benchmarking 
• Benchmarking of a building from a tenancy attractiveness perspective 

With the data collected and stored, building owners can become subscribers to receive benchmark data on their building or portfolios, enabling the identification of business best practice and a pathway to drive continuous improvement. 

Napier & Blakeley itself, can then assist in the building’s evolutionary process with their quantity surveyors, project managers and building services engineers.

Emancium brings with it established relationships and existing contracts, including the development and facilitation of major building retrofits designed to improve NABERS ratings, specialised advisory roles for Building Management Systems and Integration and Measurement and Verification support for Energy Performance Contracts.

The founders of Emancium, Craig Ryan and Stuart Winton, will continue to lead the new entity as Executive Directors of Napier & Blakeley Emancium. Between them, they have over 50 years experience as leaders in the industry. Peter Frith and Alastair Walker will join Stuart and Craig as Non Executive Directors.

Refer also  www.emancium.com

Contact Craig Ryan or Stuart Winton as below :

It is a regular occurrence and easy thing to simply adopt the vendor’s depreciation schedule. Tax law allows a purchaser to apportion values to all depreciating assets they acquire, i.e. air conditioning, lifts, carpet, chattels, etc. to reflect the cost of the asset as acquired by the purchaser. In a rising market this may even represent a value that is more than its original replacement cost.

On a recent assessment of a property that was acquired by a client for around $15million, the apportioned value of depreciable plant was a staggering $4million more than the vendor’s written down value. The tax sheltered amount increased $3million in the first 10 years of ownership. Assuming a tax rate of 30%, the increased cash value in the first year alone was $220,000 with the ten year tax deferral being $1.8million.

One thing is certain, the value of the dollar today is significantly more than the value of the dollar tomorrow!

The opportunity to improve your LVR’s today and reduce your financial risk providing real cash flow to allow appropriate capex management of the asset is invaluable.

In most instances the sums are not small! So what dollars are you really missing out on?

Don’t miss out on the benefits !

Contact Napier & Blakeley and let the industries original depreciation expert and trusted advisors help you to maximise your return this financial year.

 Contacts

Property Depreciation & Insurance
John Mathew – 03 9915 6300 – jmathew@napierblakeley.com
Peter Guerra – 02 9299 1899 – pguerra@napierblakeley.com
Peter Osborn – 02 9299 1899 – psoborn@napierblakeley.com

Transaction & Asset Advisory
Rob Howells – 03 9915 6300 – rhowells@napierblakeley.com
Alastair Walker – 02 9299 1899 – awalker@napierblakeley.com
Gavin Peach - 02 9299 1899 – gpeach@napierblakeley.com
Paul Mazoletti – 07 3221 8255 – pmazoletti@napierblakeley.com

Development Advisory & Quantity Surveying
Craig Smith – 03 9915 6300 – csmith@napierblakeley.com
Peter Hammond – 02 9299 1899 – phammond@napierblakeley.com
Paul Cosker – 07 3221 8255 – pcosker@napierblakeley.com
Adam Greene – 07 3221 8255 – agreene@napierblakeley.com

Sustainable Property Solutions
Peter Frith – 03 9915 6300 – pfrith@napierblakeley.com

Do not make the mistake of assuming that others know what they are looking for.

Did you hear the one about the Senate enquiry into two disappearing billiard tables?

These two tables used to be located in the parliament’s staff recreation area and when it was realised that they had disappeared a senate enquiry ensued to find out where they had gone and importantly $100,000 was spent to find the tables that had been sold for a sum total of $4,900.

How does that fit with you as a tax payer?

What this event does highlight is the fact that assets get added and disposed of every day in the property world. Sure items are removed and added with some people’s knowledge including the building managers and asset managers but more often than not this is where the information flow stops. The potential tax implications of this capital expenditure and disposal are often not considered, often missed or not maximised are events such as landlord contributions for fit outs and any reversionary depreciation opportunities.

If this information does make it to the accounts team, then often the information is incomplete or poorly described. What this means is that asset registers become large and unmanageable and there is therefore no way of clearly tracking the assets that are actually held and owned by the landlord. Overall this means that year on year depreciation diminishes in your tax schedules rather than rising and falling in line with the capex or replacement activity that naturally occurs with your assets. This exercise also makes the audit process easier across a whole portfolio basis.

A Napier & Blakeley health check focuses on your existing asset registers and tax depreciation claims. We highlight the opportunities for write-offs, reversionary depreciation, landlord contributions and even the initial basis of the depreciation claim. We do this because we know not everyone has the knowledge or even the time to do a whole asset review; we also know that in more than 80% of occasions we can significantly increase both the overall deductions available and also year by year returns.

Whilst it may have cost the tax payer over $100,000 to discover what happened to their (our) billiard tables, a Napier & Blakeley fee will be a lot cheaper yet so much more rewarding.

Finally you will always have to pay for capital expenditure and from a landlord perspective the costs of tenant incentives are always going to be around, by effectively claiming your depreciation and write-offs at least a little bit of the sting can be taken out of this expenditure.

Most accountants recognise that using a Quantity Surveyor saves time and money and puts you in the driving seat when it comes to good asset management; ask yours how they are making the most of the opportunities available to you.

Napier & Blakeley is the most relied upon Quantity Surveying firm in the matter of maximising the benefits that Tax Depreciation can provide to the bottom line, make us part of your good asset management.

Contact

Please contact us for our Property Tax data card.

Our strategic, cost effective advice will best position your property for the future.

Call Napier & Blakeley today if you want further information or regarding any other Napier & Blakeley services.

The past few years have thrown many challenges the way of private practice accountants, 

Napier & Blakeley, long recognised, as the market leader in property depreciation, see so many depreciation schedules that are not maintained as they should be. Assets that have long been removed from site still being depreciated and quite often representing large sums of money.
It is a regular occurrence and easy thing to do to simply adopt the vendors depreciation schedule. Tax law, however, allows a purchaser to apportion values to all depreciating assets they acquire, i.e air conditioning, lifts, carpet, chattels, etc to reflect the cost of the asset as acquired by the purchaser. In a rising market this may even represent a value that is more than its original replacement cost.

On a recent assessment of a property that was acquired by a client for around $85m, the apportioned value of depreciable plant was a staggering $24m more than the vendors written down value. The tax sheltered amount increased $18m in the first 10 years of ownership. Assuming a tax rate of 30%, the increased cash value in the first year alone was $720,000 with the ten year tax deferral being $5.4m.

Yes, It is tax deferral. Depending on the entity structures that hold the assets the eventual claw back amounts may defer but one thing is certain, the value of the dollar today is significantly more than the value of the dollar tomorrow! The opportunity to improve your LVR’s today and reduce your finance risk providing real cash flow to allow appropriate capex management of the asset is invaluable.

In most instances the sums are not small! So what dollars are you really missing out on?

Whether it’s not starting off on the right foot with depreciation or not having a close understanding of your assets when it comes to demolition or refurbishment of your assets there are many opportunities to make a real contribution from the low hanging fruit that good management of your depreciable assets can bring.

Don’t miss out on the benefits, contact Napier & Blakeley and let the industries original depreciation expert and trusted advisors help you to maximise your return this financial year.

Contact

If you want further information on tax depreciation, or any other Napier & Blakeley services please contact any of our offices below:

Melbourne - John Mathew    03 9915 6300           jmathew@napierblakeley.com

Napier & Blakeley services

• Technical Due Diligence
• Capital Expenditure Planning
• Quantity Surveying
• Strategic Asset Management
• Building & Sustainability Consulting
• Property Depreciation