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High Value Properties in City Fringe Precincts Attract Lucrative Depreciation Benefits

We’re excited to see an increasing number of newly built residential developments combining luxury resort style living, entertainment, retail and business, in fringe city districts across Australia. This has become a popular trend for developers attracting property investors and homeowners alike. The Montague Markets and Residences located in Brisbane’s riverside West End district is an outstanding example of this trend. 

Part of Pradella Developments’ total vision for the West End community, the Montague Residences, is a mix of one, two and three-bedroom homes. Each apartment features premium finishes, seamless indoor and outdoor living spaces, and spacious entertainer kitchens. Residents can access an exceptional range of exclusive resort-style facilities such as outdoor theatre, lagoon pool, sky garden, and gym, attracting high value depreciation benefits for investors.  

Recently, our Property Tax and Quantity Surveying team, completed a review of the Montague Residences and compiled a comprehensive depreciation schedule for our investor client. Our report included calculations of depreciation deductions totaling up to $390,850 over 40 years. Our report provided a breakdown of depreciation deductions of approximately $22,000 for the first full financial year and diminishing in value over the expected life of the assets. These property tax deductions enable investors to offset rental income and manage cash flow.

As the Montague Residences are newly built apartments, property investors have the benefit of claiming allowances for all eligible deductions on the Building (Division 43) and Plant & Equipment assets (Division 40}. Typical depreciation deductions on kitchen appliances, washing machine and dryers, air conditioners, hot water system, alarms, floor coverings, curtains and blinds are applicable. As a bonus, a share of the depreciation value of common assets held by property owners are also eligible to claim. These include: 

  • Motion picture projector system
  • Screen installations
  • Solar powered generating system assets
  • Detection and alarm systems
  • Fire indicators and prevention equipment
  • Stair pressurisation assets, 
  • Pressurisation and extraction fans
  • Barbecue, fixed, sliding trays and cookers
  • Furniture, freestanding
  • Plant pots and planters
  • Garden watering systems control panels, and pumps and timing devices
  • Access control systems, swipe card readers 
  • CCTV cameras and monitors
  • Swimming pool filtration assets including pumps
  • Vehicle controls – gates and motors
  • Lifts

Investors of these stylish contemporary Montague Residences will enjoy the benefits of claiming substantial depreciation deductions to reduce their personal taxable income.  

Don’t miss out on claiming valuable depreciation deductions. Ensure your depreciation schedule includes all eligible deductions and is compliant with the latest tax legislation.  

To find out more contact our Property Tax team.