How to save tax on residential

investment properties

About Us

• Opteon Victoria is Victoria’s largest independent property valuation and advisory enterprise.

• Combining the resources and expertise of Landlink-Opteon and Market Line-Opteon with a network of 14 offices throughout Victoria, employing approximately 200 professional staff.

The best kept secret that 65%

of investors are unaware of

ATO approved

Depreciation Schedules

Why should you be interested?•They will reduce your clients’ tax

bills.

•Your knowledge will impress your clients.

•Your clients will love you.

•Value add to your own client services

Who should have a depreciation schedule?

Everyone who owns an

INVESTMENT

Property!

What are they?

• A tax deduction for the ageing of the buildings and external improvements.

• A tax deduction for the ageing of the

chattels, plant and equipment.

Relevant Dates- Residential

• Buildings after July 1985

• External work after Feb 1992

• Chattels - a change of ownership

What is assessed?

• The buildings – dwelling, garage, carport, sheds, etc

• Other fixed structures – paving, fencing, pools, retaining walls, etc

• The chattels & plant – carpet, blinds, appliances, etc

Two types of depreciation

1.Prime cost method

2.Diminishing value method

Example 1- 2008 Townhouse• Construction

cost $338,000

The tax deduction1. The total tax deduction after 5

years$50,986

2. The total deduction after 10 years

$95,863

Annual Tax Allowance- Diminishing Value Method

Example 2- Kavanagh Street, Southbank

• An average 2 bedroom apartment 70 sqm.

• Sale price $344,000 April 2007

• Common property includes basement car parking, large foyer area, lift lobbies, a swimming pool, small gym and a paved BBQ area

The tax deduction1. The total tax deduction after 5

years $22,480

2. The total deduction after 10 years

$40,625

Example 3- Bourke Street, Docklands• A good 2 bedroom

apartment of 69 sqm. Erected 2008

• Sale price $ 482,000 in March 2009

• Common property includes basement car parking, lift lobbies, and small paved terrace

The tax deduction

1. The total tax deduction after 5 years

$36,996

2. The total deduction after 10 years

$62,159

Annual Tax Allowance- Diminishing Value Method

Remember…

• Pretty much everything except the plants in the yard are included.

• Every building erected or renovated after 1985 is eligible.

• Chattels are revalued every time the property is sold.

• We provide the two types of depreciation.

Can claims be back dated?

YES

Two years within the present tax year or more with a variation.

What are the 3 great benefits for you?

1. These will reduce your client’s tax bill

2. Your knowledge will impress your clients

3. Your clients will love you.

The cost of this investment?

• Residential fee is $550 incl GST

Fully tax deductable and lasts for 20 yearsApartments with substantial common property

an extra $100 + GST

If fully furnished - an extra $100 + GST

• Commercial/ Industrial properties - quote

222a / 757 Bourke St, Docklands.

Stuart Bridgman Director – Property Services

Geoff PinneyDepreciations Coordinator

Ph: 1300 786 022Fax: 03 5223 2309

E-mail: depreciation @ opteonvictoria.com.au