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NBtax Tax Bites

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Hello, Helio. Fantastic Depreciation Benefits for Investors

Developed by Spec Property, the Helio is one of the most impressive modern residential apartments in North Melbourne. With stunning views of Flemington Road, these luxury apartments are delivering substantial depreciation benefits for our clients. Each apartment features:

  • Oak timber floors in living, dining, entry and kitchen
  • Wool blend, natural fibre carpets to bedrooms
  • Timber veneer to kitchen and bathroom cupboards
  • Smeg appliances including cooktop, oven, rangehood and dishwasher
  • Porcelain tiled bathrooms
  • Car park and common rooftop area 

Our Tax team inspected the property to assess the building and the assets eligible for depreciation allowances under Divisions 40 and 43. 

The result was a staggering $334,793 of depreciation deductions over the next 40 years. Our clients or any future investors purchasing this property will be able to offset rental deductions and manage cash flow, potentially saving thousands of dollars in taxes. 

During the first full financial year alone, our client was able to claim depreciation deductions of up to $$14,149 for both the Building and Plant & Equipment assets. 

Among the many items able to be depreciated, here are a few you may not realise are eligible for claiming:

  • Air-conditioning units and ceiling fans 
  • Automatic entry system and mechanical door closers
  • Blinds, carpets and rugs
  • Fire control and alarm systems 
  • Bedding and linen, and door mats 
  • Hot water system
  • Kitchen appliances – dishwasher, exhaust and range hood, oven and stove
  • Washing machine
  • Security systems
  • Vehicle control equipment 
  • Ventilation fans
  • Lift 

Savvy investors are making the most from depreciation allowances to offset rental income and manage cash flow. Our Quantity Surveyors are qualified and experienced in Tax legislation and construction. This knowledge will ensure your depreciation report is prepared accurately to deliver you the best benefits and meet the ATO tax compliance requirements. To order your report contact our team.