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NBtax Tax Depreciation Schedules | Licenced Tax Agents & Quantity Surveyors

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Attractive Depreciation Rewards for Investors in Regional NSW

This depreciation case study features a new development in Albury New South Wales. Our clients, Don and Nancy purchased a two-bedroom, two bathroom apartment in the new Hamilton development.  

This stylish apartment featured:  

• Open plan living area with luxurious fittings
• SMEG kitchen appliances including dishwasher and conventional microwave
• SMEG cook top (induction or gas) and SMEG oven
• Floor to ceiling tiles in both the bathroom and ensuite
• Ducted refrigerated heating and cooling
• Floating floorboards throughout and carpeted bedrooms.
• One undercover carpark.

As the property was purchased as new, in March, 2021, our clients are able to claim depreciation allowances for both the Building (Division 43), and Plant & Equipment assets (Division 40). 

Our Property Tax team calculated eligible depreciation deductions for this property to be up to $488,462, over the next 40 years. Don and Nancy can claim $22,855 during the first full financial year. 

Typical eligible deductions included: 

  • Air-conditioning
  • Carpets
  • Fire control and alarm systems
  • Hot water systems
  • Kitchen appliances including dishwasher, range hood, oven, stove, exhaust
  • Ventilation fans
  • Security systems
  • Vehicle control equipment
  • Lifts

Overall, our clients are very happy that they will be able to claim depreciation allowances to help offset rental income and reduce their taxes.

Before buying any investment property remember to do your research, especially in regional areas, Here are few helpful facts about Albury. 

  • Location - Albury is a major regional city in New South Wales positioned on the Hume Highway and the northern side of the Murray River. Its 554 km from Sydney and 326 km from Melbourne
  • Population of 55,055 as at 2020 with a density of 179.2 person per square km
  • Land 307.3 square km
  • Temperate climate with cool to mild winters and very warm to hot summers
  • The city comprises several suburbs: Central Albury is the hub of commercial activity, West Albury is primarily residential, East Albury is residential with light industry and retail park, South Albury is a mix of residential and industrial areas plus some farming, North Albury is primarily housing developments. Lavington is the largest suburb of Albury and the only one with its own postcode. Thurgoona is home to a new residential suburb built by Albury Wodonga Development Corporation.
    Median House rental $390 p/w (house) or $280 p/w (unit)
  • Median house price is $610,750 (free-standing house) and $495,000 (unit) as of June 2021. Source housing.id.com.au