What is depreciation?

Depreciation is a tax deduction which is available to be claimed by owners of income producing properties and commercial tenants each financial year. It is the decline in value of the building structure and the plant and equipment assets within it that the Australian Tax Office (ATO) allows as a deduction to be claimed.

Depreciation is often one of the most missed and under claimed deductions. It is considered a non-cash deduction as you don’t need to spend any money on the property to claim it.

Claim significant deductions

Depreciation is able to be claimed under two separate components:

Capital works deductions

Capital works deductions

Also known as building write-off, this is the decline in value of the building structure which is generally able to be claimed by the property's owner. 

Plant and equipment

Plant and equipment

This refers to items which can be easily removed from the property and this category is generally where commercial tenants can maximise their deductions.

Typical depreciable plant and equipment assets include:

  • Air-conditioning units
  • Hairdressing chairs
  • Bathroom and kitchen appliances, bookcases and accessories
  • Desks and Chairs
  • Carpet
  • Curtains, blinds and window dressings
  • Flooring

Case studies

See the case studies below for some of the typical deductions we have found for a range of commercial properties.

Warehouse purchase price:
$1 million
Dairy farm purchase price:
$3.6 million
Office building purchase price:
$1.1 million
$1.1 million
Small warehouse purchase price:
Retail shop:
$2 million
Cattle farm purchase price:
$2.1 million
Poultry farm purchase price:
$2.1 million
Sheep farm purchase price:
$2.6 million
Vineyard purchase price:
$4.5 million

How do I organise a schedule?

Engaging BMT Tax Depreciation to complete a commercial depreciation schedule can mean that you’re able to claim back thousands in deductions each financial year.

Get a Quote

Request a quote for your tax depreciation schedule.

Property details

Property details are collected and BMT will arrange access to complete a property inspection.

Claim deductions

Your schedule will be available within 5 – 7 days of all information being gathered. BMT can even forward your schedule to your Accountant directly, saving you time.