Autumn 2004

The Royal Institution of Chartered Surveyors (RICS) is one of the most respected and high profile global ‘standards and membership’ organisations for professionals involved in land, valuation, real estate, construction and environmental issues with...

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The ATO have placed a limitation on the types of properties qualifying for the premium 4% write-off for hotels, motels and guest houses. Interpretative Decision 2003/315 addresses the grey area between hotels and apartments.

In July 2001 the low-value pool was introduced into the Australian tax system. It enables low-cost assets (assets which when acquired have a total cost of less than $1,000) to be depreciated at 18.75% on the diminishing value basis for the first year of ownership. From the second year 37.5% will apply.

The purpose of these tax deductions, which are found in the Uniform Capital Allowances legislation in the Income Tax Assessment Act 1997, is to compensate taxpayers for the obsolescence and wear and tear of their assets.

The benefits of claiming depreciation are clear;

Every day sees a new headline relating to the residential property investment market, be it speculation on the state of the market, the evils of property spruikers, conflicting messages relating to the structuring of investments or the policy issues relating to negative gearing and first home affordability.