Claim depreciation deductions for fit outs

As a commercial property tenant, you could claim thousands of dollars in depreciation deductions. These deductions reduce taxable income and improve cash return, helping to offset the cost of operating your business. Commercial property depreciation can be claimed under two separate divisions: capital works (Division 43) and plant and equipment (Division 40).

Capital works

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

There are different rates of depreciation available for different properties based on their type, industry and construction commencement date.

Here are some examples of typical depreciable items you could claim under a capital works deduction:

Commercial property:

Car parks
Car parks
Doors, locks and door handles
Doors and windows
Bathtubs
Sinks and
toilet bowls
Partitions
Partitions

Plant and equipment depreciation

These are items that are easily removed from the property and where, as a commercial tenant, you can maximise your deductions.

These assets have an effective life as set out by the ATO and can be depreciated over time. There are two different methods of calculating depreciation on plant and equipment assets, the prime cost and diminishing value method.

Here are some examples of typical depreciable items you could claim under a plant and equipment deduction:

Commercial property:

Shower solid BMT blue
Chairs
Cash register
Cash register
Carpet and flooring
Carpet and
flooring
Window dressings
Window
dressings

Plant and equipment

These are items that are easily removed from the property and where, as a commercial tenant, you can maximise your deductions.

These assets have an effective life as set out by the ATO and can be depreciated over time. There are two different methods of calculating depreciation on plant and equipment assets, the prime cost and diminishing value method.

Why is it important to have a site inspection for my property?

Some assets can cause confusion because some parts will qualify for plant and equipment depreciation while other parts qualify for capital works deductions. An example of this is an air conditioning unit, where the unit itself depreciates under division 40 while the ducting for the same unit falls under division 43.

Why BMT Tax Depreciation?

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Comprehensive reporting

Our commercial schedules can be split for multiple entities, tenants and assets purchased at different times.

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Complimentary estimates

We will provide a complimentary depreciation assessment before you proceed.

The BMT Guarantee

The BMT Guarantee

If we can’t find double our fee in deductions in the first full financial year, there will be no charge for our services.

How do I organise a schedule?

Organising a commercial BMT Tax Depreciation Schedule couldn't be easier.

1: Get a Quote

Request a quote for your commercial tax depreciation schedule.

2: Provide details

We’ll contact you to arrange access to complete a property inspection.

3: Claim deductions

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

FAQs

Commercial tenant depreciation schedule FAQs

Commercial tenant depreciation schedule FAQs

What does a commercial BMT Tax Depreciation Schedule involve?

Using industry specific legislation, a specialist team completes a thorough site inspection and will assess your business premises, to ensure every deduction is uncovered and maximised. This includes any fit-out installed, or assets removed during an upgrade or renovation. When construction work takes place, assets are, removed, or scrapped, from a property during its income production period, there is often remaining unclaimed depreciation that can be claimed in full. BMT are experts at determining this residual claim, and will make the necessary adjustments to your depreciation schedule, when any alterations are carried out.

Commercial tenants can claim depreciation for any fit-out they add to a property once their lease commences. This includes items such as desks, blinds, shelving, carpets, vinyl, firefighting equipment and security systems.

If lease conditions mandate a tenant return the property to its original condition, they may also be able to claim a write-off for any remaining depreciable value available on scrapped assets.

BMT Tax Depreciation is one of only a few tax depreciation schedule providers that offer an Australia wide service. No matter where in Australia your property is located, we can help. For details of your nearest office please visit the contact us page.

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