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Investing, Long Term, Short Term

Attention Property Investors | How to Find Hidden Treasures in Your Tax Return.

June 17, 2021 – 4 minute read – by Genevieve de Zeeuw

Remember that time when you found $20 bucks in an old pair of jeans? Or that jacket you wore last winter? You may not have gone so far as doing a “happy dance,” but it was a pretty good feeling…right?

Now imagine if you found $20K, how would you feel?

Well, the reality is that you can find up to $20,000.00 without really having to do very much. If you are a property investor, there is potentially a tonne of idle cash flow just sitting there waiting for you to grab. Here at Property Providers, we have been networking and doing your homework for you! 

We’ve partnered with one of Australia’s leading quantity surveyors, who are specialists in property tax depreciation.  They let us in on a secret – over 78% of accountants who conducted or self-conducted property depreciation schedules miss valuable claimable deductions. Yes, that is right…over 3/4 of investors are leaving money on the table. In other words….the government most likely owes you money! Across Australia, our tax depreciation partner on average has identified their clients with almost $9,000.00 in deductions. 

However, for our owners who own more premium properties or who have had recent renovations, this has been reported to be significantly higher, up to and above $18,000! Many property investors are under a false understanding that the depreciation element of their tax return is covered adequately by their accountant. 

The simple reality is that accountants are not Quantity Surveyors. 

While your accountant can certainly prepare your tax return, they are not actually qualified to prepare a detailed depreciation schedule and therefore often do not pick up the same level of detail and insight as a depreciation professional. Accountants are naturally conservative to protect their clients (not to mention themselves of course). Ask any accountant if they are happy to be provided with a Depreciation Schedule (vs. inputting the deductions themselves) and we bet the answer would almost unanimously be “Yes”. After all, it saves them work and manages their risk as well as provides them with all the information in a completed format. It’s a no-brainer and a win-win for everyone.

So, how does this work?

It works by your accountant operating in conjunction with the Quantity Surveyor. Once your tax depreciation schedule is completed, it is easily used by your accountant when preparing your tax returns.  It ensures that commonly missed deductions will not go unnoticed.  Needless to say, the end of the financial year is a good time to get on top of this and claim back missed dollars and take full advantage of the available tax benefits.

By using our chosen partner, your one-off depreciation schedule fee is 100% tax deductible and your schedule lasts a lifetime and they guarantee that they will double their fee.

A Tax Depreciation Report is broken down into plant and equipment deductions and capital works allowance. Going deep into detail here almost always yields results. Your schedule and depreciation reports will also outline various methods of claiming depreciation so you can make informed decisions about which method will best suit your investment strategy.

Tax return lost savings
 Mistakes can equal lost savings!

One of the most common depreciation mistakes made by investors who do not seek expert advice is that depreciable items are simply missed. With more than 6,000 depreciable plant and equipment assets (including furniture) listed by the Australian Taxation Office (ATO), it’s easy for investors to overlook common household items that hold deductible value. And your accountant is relying on you to advise of each item without personally inspecting the property themselves, hence why using a specific depreciation partner makes sense!

Do you really want to be handing over more money to the Australian Taxation Office than you need to? Wouldn’t you rather use that money to re-invest or perhaps treat yourself after you’ve concorded yet another year – a tougher year at that!

image of IRS with snoopy cartoon

Own a furnished property? We are finding that Investors often do not consider the advantage of additional tax depreciation deductions available on furniture. Furniture is a type of plant and equipment asset. Furniture with a value less than $1,000 can be deducted using a low-value pool, allowing it to be depreciated at an accelerated rate 18.75 per cent in the year of purchase, then 37.5 per cent every year following). Higher-valued furniture depreciates at a rate set by the Australian Taxation Office, based on each item’s effective life, or how long it can be used to produce income.

“Shhh, it’s a Secret”

Depreciation is one of the simplest, but forgotten ways to harness idle cash flow! Here at Property Providers, we are reminding all our owners of the importance of a tax depreciation schedule. We have even gone as far as to get our owners a discounted price with our partner.  Importantly there are no kickbacks or commissions paid to us. It’s just part of our service because we know how important it is to harness your idle cash flow and have your assets working as hard as possible for you.

Property Providers is Sydney’s most flexible residential rental agency. Our core purpose is “To Help People Live Better” by providing long-term luxury leasing, super-luxury holiday homes and executive rentals for extended stays.  If you are interested in listing your property please contact us at +612-9969-7599 or if you are looking for a tenant or guest who is looking for a handpicked home please visit our website or brief us here.


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Genevieve de Zeeuw

The real estate world can be daunting without guidance from a well experienced property manager. Whether it be finding a new home, securing the best standard of tenant or ongoing maintenance of your investment, Genevieve will always have your best interest at heart Genevieve prides herself on her integrity to deliver a high quality service on a daily basis for both home owners and tenants. Genevieve’s passion is to make others lives easier when it comes to all things property and believes that prevention is better than the cure. Genevieve’s greatest strength is her ability to uncover potential issues before they arise, leading to a better quality of living. In turn, this has raised the value & occupancy across our portfolio ensuring everyone “Live Better”