Napier & Blakeley Articles and News » ATO

More changes to effective lives

Napier & Blakeley — Wed, 08 Jul 2020 23:00:56 +0000

The ATO has released Tax Ruling 2020/3 that took effect on the 1st July 2020.

New categories of assets have been included:

Supermarket and grocery stores;
Aircraft manufacturing and repair services;
General practice medical services;
Child care services; and
Funeral, crematorium and cemetery services.

Kind of interesting but surely coincidental that the categories included are in areas that are surely high in the list of places of business that is at the forefront of our thoughts right at this moment.

The Commissioner has determined the effective lives for depreciating assets utilized in these industries.

Division 40 of the Income Tax Assessment Act 1997 allows the owner of depreciating assets to self-assess the effective lives. To do so, would require serious consideration on possible consequences. That is another conversation for another day.

Let us assist you in ensuring that your depreciation schedules are accurate and reflects current legislation and ATO guidelines.

We have been assisting valuable clients since 1985.

Please do not hesitate to contact one of our registered tax practitioners for assistance:

	MELBOURNE John Mathew Director o. 03 9915 6300 m. 0414 559 326 e. jmathew@napierblakeley.com		NATIONAL 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 BDM – Tax QLD o. 1300 730 382 m. 0409 722 709 e. khemphill@napierblakeley.com

Did you know you can claim depreciation on “working dogs”?

Napier & Blakeley — Thu, 18 Apr 2019 01:27:18 +0000

Another determinant by the ATO has classified working dogs specifically those used for security, therapy, detection, guard, and law enforcement, purchased or used effective as of 1 July 2019, as a capital allowance deduction. Most working dogs now have an effective life of 8 years, I wonder what the Easter Bunny’s effective life would be, not to mention working reindeers and other animals. Refer to this link for actual ATO determination of Working Dogs.

As tax time and the federal election draws near, the impact on the property market will become clear. We’ll keep you updated, in the meantime, have a happy and safe Easter break.

Cladding – Tax Deductions – Repair or Improve – ATO Determination

Napier & Blakeley — Mon, 10 Dec 2018 02:34:04 +0000

Recently the ATO has determined the replacement of ACC (Aluminium Composite Cladding), is in fact an improvement to your property and not a repair.

We have several clients who are now reviewing their ACC on their sites and discussing with their fire engineer a solution to rectify their property and make safe moving forward.

The ATO have clearly said these costs will be a capital improvement for the purpose of Division 43 of the ITAA 1997 (refer to the link further below).

In financial modelling, this means, if the new cladding installed cost $1m, you can depreciate this cost from completion of installation over the next 40 years (2.5%) which equates to a deduction of $25,000 per year, as an example.

An additional deduction may be allowed to write off the existing cladding, if the original cost and installation was completed after 1979 on hotels (40 year life), commercial, aged care, industrial buildings and similar construction which commenced after 16 September 1987 (2.5%). As we have qualified quantity surveyors registered on the Tax Practioners Board we can provide this deduction for you.

Below is the link from the ATO which provides some more clarity and discussion.

https://www.ato.gov.au/law/view/view.htm?docid=EV/5010053298616&PiT=99991231235958

If you would like to discuss in more detail, please do not hesitate to contact any of our offices and our Property Tax Depreciation teams will assist.

Merry Xmas on behalf of your Depreciation Trusted Advisors and have a Safe New year

BRISBANE
Paul Mazoletti
National Director
o. 07 3221 8255
m. 0408 749 202
e. pmazoletti@napierblakeley.com

MELBOURNE
John Mathew
o. 03 9915 6300
m. 0414 559 326
e. jmathew@napierblakeley.com

SYDNEY
Peter Osborn
o. 02 9299 1899
m. 0439 765 571
e. posborn@napierblakeley.com

SYDNEY
Peter Guerra
o. 02 9299 1899
m. 0423 567 159
e. pguerra@napierblakeley.com

ATO to tackle Property Investor’s Rental Deductions

Napier & Blakeley — Mon, 15 Sep 2014 04:03:50 +0000

On the 18^th August 2014, the ATO released an article highlighting the plan to investigate and analyse rental property deductions.

Within the article, the ATO states they will be reviewing and ensuring each property investor has correctly apportioned property depreciation allowances.

We continually strive to educate all investors the difference between capital improvements, repairs and maintenance items and also clarify which are structural improvements. Our reports have highlighted these costs in the correct categories for the last 24 years.

Our services are carried out by our in-house specialist tax surveyors who are all accredited tax agents (Tax Agents Services Act 2009) for the purposes of preparing depreciation schedules. Our in-house research enables us to keep at the forefront of the ATO requirements. This enables our clients to maximise their position with the surety that they comply with the tax act.

Our experience in preparing property depreciation reports means you can be confident that the deductions you are claiming are correct. Please don’t hesitate to contact one of our Registered Tax Agents.

Refer to this link for more information on this article.

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