Napier & Blakeley’s Louise Hegarty discovers the best way to get your head out of the sand, and the money into your pocket.

There’s one area even experienced property investors can struggle with – property tax depreciation. According to recent mortgage lending stats, the majority of property investors in Australia under-claim the available depreciation, and many don’t claim at all.

Yet it’s surprisingly simple and lucrative, says Peter Guerra, senior manager of the tax team at the Sydney office of Napier & Blakeley. Like most things, it’s all about the people.

“Finding the right professional sets you up for the life of your investment,” says Peter. “An experienced and registered tax depreciation specialist has the skills to obtain the maximum return while still staying compliant. And most importantly, you can relax knowing it’s all being looked after.”

The basics are fairly simple, says Pete. Property tax depreciation (or ‘capital allowances’) are deductions that reduce your taxable income, cutting your tax bill and putting more cash in your pocket. There are two types of allowances:

• Depreciation on plant and equipment – items within the building like carpets, lifts, and whitegoods, and
• Building Allowances – primarily based on the structure of your asset. Claims for these are dependent on when the building was built. As a rough guide, commercial properties built after July 82 and residential properties built after July 85 are eligible for deductions.

Every property is different, of course, and that’s why using qualified and registered tax surveyors is crucial. The Australian Tax Office (ATO) has specified that quantity surveyors are the professionals best qualified to estimate deductions – and they must be registered tax agents. Site inspections are another factor vital to compliant reporting, says Peter. “A detailed inspection substantiates the assets and value of the property, and ensure we claim every possible deduction. And we photograph and document our inspections to verify our claims in case of an audit. It’s all about maximum return and peace of mind.”

How much you can claim depends on a number of factors, including the type of property as well as purchase date and price. “Every investment property has deductions that the owner can claim, and they’re often in the thousands. Over the life of the property this can make a huge difference to the return on your investment.”

Who you choose to work for you will make a tangible difference over the life of your investment. As well as qualifications and experience, a diligent team stays up-to-date with ATO developments. “Napier & Blakeley has a dedicated research team who advises all our consultants of ATO rulings and revisions – we make sure we’re current and informed.”

The aim of the game here is to maximise deductions yet remain compliant. “That’s where experience comes in,” says Peter, who’s been part of the team at Napier & Blakeley for over a decade. “We were the first company in Australia to specialise in property tax depreciation, and we’re still the market leaders. Some of our clients have been with us for decades, and it’s been great to be a part of their success.”

The lesson here is clear – this is a job for the professionals, so all you need to do is a bit of research and choose your team. Get it right throughout your investment career, and you’ll make life a whole lot easier – and more profitable.

Call Napier & Blakeley on 1300 730 382 now to discuss your Property Tax Depreciation.

Kath Hemphill
National Residential Manager
M: 0409 722 709
E:  khemphill@napierblakeley.com

Featured in the First Property Buyer Magazine
April 2015

*(fear of missing out?)

If you’re a property investor and not claiming tax depreciation, you are missing out on some serious cash.

But don’t worry – we’ll fix it!

Napier & Blakeley’s expert team have been maximising property depreciation claims for over three decades. And if we can’t claim you back three times as much as our very reasonable fee, we’re free.

Chances are, though, you’ll end up with thousands of dollars in your pocket. We can even help you claim deductions from past financial years, up to two previous years on top of the current tax year!

We’ll get you every cent you’re entitled to. Our registered tax agents work with accountants and the ATO to stay updated and compliant – ensuring the maximum return for you.

Turn your FOMO into CASH.

Call the experts on 1300 730 382 to find out how we can maximise your property’s return.

Kath Hemphill
National Residential Manager
M: 0409 722 709
E:  khemphill@napierblakeley.com

Have you got your depreciation schedules in order?

Getting your tax depreciation or ‘property allowances’ right can make a real difference to reducing your taxable income, slashing your tax bill and putting more cash in your pocket.

Maximising returns

How does it work?  You can claim deductions based on two allowances:

1. Depreciation assets:
These are items that lose value more quickly – such as carpet, lifts, and whitegoods. You may be able to claim up to 20% of the property’s purchase price this way.

2.  Building allowances:
Depending on when your property was built, you may also be able to claim a deduction for part of the original construction or refurbishment costs.

You may even be able to back-claim previously unclaimed depreciation benefits.

Managing risk

The Australian Tax Office (ATO) requires all assessments of building works to be completed by a suitably qualified professional. That’s us! We’re Quantity Surveyors and we stay at the forefront of ATO requirements, which is worth its weight in gold.

In fact, we were the first Australian company providing specialist property taxation services – and three decades later, we’re still doing it.  Plus, we’ve got offices in every major city so we’ve got you covered.

Minimise cost

Here’s some more good news. Our competitive fees are 100% tax deductible. And, if we can’t find more than double our fee in deductions for you within the first year, we won’t go ahead.

With a professionally prepared Property Depreciation Schedule, you can end up with $1000s more in your hand for the life of your property investment. Cash really is king so why spend more than you have to? It’s a great way to unlock cash and grow your property portfolio faster.

Around four out of five property investors have room to move so odds are you do to.

The tables below provide an estimate of the depreciation deductions on a property and how much you might be missing out on.

Estimate based on 37% Tax Bracket. These figures are of a general nature and should not be applied or acted upon unless supported by our specialised advice. The above rates do not include the Medicare Levy. They must not be used for taxation purposes in this form. Division 43 Allowances are calculated on the PRIME COST METHOD. A claim will be dependent on the purchaser’s tax position.

Make your move today.

Contact us on 1300 730 382 and let N&B support you to the max.

Kath Hemphill
National Residential Manager
M: 0409 722 709
E:  khemphill@napierblakeley.com

Make your property investment return more cash, year after year, with a professionally prepared Depreciation Schedule.

Investors who produce an income from residential property may be eligible to claim property tax allowances.

This means you end up paying less tax without having to outlay cash and get a bigger tax return by claiming:

• up to 20 percent of the purchase price in depreciating assets
• part of the construction costs if the property was built after 1985
• There’s no risk – if we can’t find more than double our fee in deductions for you within the first year, we won’t go ahead.

Let’s talk.

Contact us on 1300 730 382 and get your hands on your cash sooner.

Kath Hemphill   khemphill@napierblakeley.com

The figures and benefits speak for themselves:

There’s no risk; If we can’t find more than double our fee in deductions for you within the first year, we won’t go ahead.

Plus; You may even be able to back-claim previously unclaimed depreciation benefits.

Let’s talk.

Contact us on 1300 730 382 so that you can lodge your tax return with an N&B Depreciation Schedule to maximise your cashflow today.

Kath Hemphill   khemphill@napierblakeley.com   

Around four out of five property investors don’t, so you’re not alone.

A professionally prepared Depreciation Schedule will help you reduce taxable income and maximise tax refunds for the life of your property.

• There’s no risk.  If we can’t find more than double our fee in deductions for you within the first year, we won’t go ahead.
• Save time and effort.  The schedule identifies how much depreciation can be claimed.
• Rest assured.  Our in-house accredited tax agents are property tax experts who can enhance the return on your investment. After all, we’ve been doing this longer than any other Australian provider. 

Let’s Talk. Contact us on 1300 730 382 now before you lodge your tax return and maximise your property investment returns today.

Kath Hemphill   khemphill@napierblakeley.com