WITH THE RIGHT ADVICE you can achieve thousands of dollars in depreciation deductions on commercial property fit-outs. No matter what the industry you are in, claiming depreciation will help maximise your cash flow. [Read more…]
Capital Works Deductions Fully Explained
15 July, 2020 by Leave a Comment
UNDERSTANDING tax depreciation lingo can sometimes be confusing but as an investor, it’s important that you have a good understanding of the depreciation deductions you’re entitled to claim – to ensure you’re getting the most out of your investment property.
As outlined by the Australian Taxation Office there are two categories that comprise depreciation deductions – division 43 capital works deductions and division 40 plant and equipment depreciation. [Read more…]
Australia’s Job Recovery Post COVID-19
1 July, 2020 by Leave a Comment
DESPITE A RECENT surge in positive COVID-19 cases for Victoria, the infection rates detected by its testing blitz have remained at a very low 0.2%.
And so, that would suggest the virus is not widespread within the community.
Furthermore, there hasn’t been any marked increase in the number of cases actually requiring hospitalisation.
Half of the Job Losses to be Back by Christmas
The Stimulus Packages: What Business & Property Owners Need to Know
17 June, 2020 by Leave a Comment
AMID THE COVID-19 pandemic, the government has announced several stimulus packages to help Australian businesses. If you’re a business or property owner, here is what you need to know.
Instant Asset Write-off Expansion
More business owners will be able to claim the instant asset write-off this financial year. The government announced an increase of the instant asset write-off threshold from $30,000 to $150,000.
The increase has also been extended to include business with an aggregated annual turnover of up to $500 million.
The instant asset write-off expansion is now in place and will be until 30 June 2020.
The Backing Business Investment incentive
This fifteen-month incentive will support business investment by accelerating depreciation deductions for remaining assets not affected by the immediate write-off changes.
Different rules apply to whether an entity is using the simplified rules of capital allowances for small businesses.
Small businesses with an aggregated turnover of up to $10 million can take advantage of the Backing Business Investment incentive. They can deduct 57.5% of the asset cost in the year of purchase.
In later years, the asset will be depreciated as part of the general small business pool rules.
Businesses with an annual turnover of up to $500 million will be able to deduct fifty per cent of the asset cost, plus an additional amount of the standard depreciation on the remaining balance, in the year of purchase.
It’s important to note that both the instant asset write-off and backing business investment incentives are only available to business owners. This means landlords who own a commercial building (but do not use the building for business operations) cannot claim the incentives.
Commercial Tenancies Mandatory Code
As you’d be aware, the government has also announced a mandatory code of conduct for commercial tenancies.
This mandatory code introduced a number of good-faith principles to guide negotiations between tenants and landlords, where a tenant has been affected by COVID-19.
Some inclusions involve rental waivers, deferrals and disallowing lease terminations. And you can find out more about the principles here.
Your Complete Depreciation Checklist for Commercial Property
20 May, 2020 by Leave a Comment
AS TAX TIME APPROACHES, you need to understand the depreciation allowances available to owners and tenants of commercial property.
There are many rules which apply and the difference in depreciation found can vary depending on the industry, assets and property.
By becoming more aware of commercial depreciation, property owners (and tenants) can make more informed financial decisions and improve their cash flow and their “bottom line”. [Read more…]
How Quickly Can Australia’s Economy Recover?
13 May, 2020 by Leave a Comment
SEVERAL CLIENTS have been asking about how long until things start to get back to “normal”. And what changes investors need to watch for, after we emerged from lockdown.
During times of economic uncertainty, you should focus on the underlying fundamentals driving demand and investment. And these still remain strong.
In my view, you should see a stronger than expected recovery – provided various states don’t unnecessarily delay the steps needed to restart the economy. [Read more…]
Understanding the Basics of Commercial Property Depreciation?
6 May, 2020 by Leave a Comment
EVERY COMMERCIAL PROPERTY INVESTOR can reduce their tax liabilities by claiming depreciation. When claimed correctly, depreciation deductions can transform a negative cash flow investment into a positive one.
What is commercial property depreciation?
The Potential Benefits Gained from COVID-19
22 April, 2020 by Leave a Comment
IT’S TRUE … the economy will suffer from COVID-19. However, the adverse impact will not be felt universally. And in fact, many businesses have never been busier – working 12-hour shifts and some, even around-the-clock.
Determine Your Depreciation Before You Purchase
9 April, 2020 by Leave a Comment
BEFORE PURCHASING a commercial investment property, you should first crunch the numbers. That’s because the property will provide an even better return, once depreciation is claimed.
Savvy investors will usually consider the potential return of the property, the surrounding commercial infrastructure, along with the vacancy rates in the immediate area. [Read more…]
Why Should You Only Be Looking 4 Years Ahead?
18 March, 2020 by Leave a Comment
YOU HAVE PROBABLY SEEN a number of other software packages out there on the market, which will encourage you to create 7 to 10-year projected cash flows.
In most cases, they have been designed by Techos and NOT by investors. And as a result, they lull you into a false sense of security. Fundamentally, there are two main reasons why I consider them to be laying a trap for even seasoned investors. [Read more…]
Commercial Property Depreciation FAQs
4 March, 2020 by Leave a Comment
GETTING YOUR TAX IN ORDER can be an overwhelming task. But when you have a commercial investment property, it can seem even more complex.
We’ve compiled a list of the most commonly asked questions to highlight just how depreciation can help maximise your cash return on a commercial property. [Read more…]
