A complete Depreciation Checklist for Commercial Property Owners

With the end of financial year upon us, commercial property owners are encouraged to arrange a tax depreciation schedule and claim what could be thousands of dollars in depreciation deductions.

Australian Taxation Office (ATO) legislation allows the owner of any income producing property to claim depreciation in two ways, as capital works deductions or depreciation for plant and equipment assets.

Capital works deductions

Capital works deductions apply to the structural elements of a building such as:

These deductions are based on the historical costs of the building and with the exception of traveller accommodation can only be claimed on commercial buildings in which construction commenced after the 20th of July 1982. Capital works deductions for traveller accommodation can be claimed on buildings in which construction commenced after the 21st of August 1979.

Plant and equipment depreciation

Plant and equipment assets are the mechanical and removable assets contained within an investment property. For commercial investment properties, the types of assets which an owner can claim vary significantly depending on the buildings use and industry.

Examples of assets which are commonly found in commercial properties include:


Depreciation for plant and equipment assets is calculated dependant on the individual effective life of each asset as set by the ATO. The effective life of assets can also vary from industry to industry, so it is important to consult with a specialist Quantity Surveyor such as BMT Tax Depreciation to ensure deductions are calculated accordingly and the maximum deduction is received.

BMT Tax Depreciation offer a handy app called Rate Finder which allows you to search the effective life of any depreciable asset by name or industry online or via an app for iPhone or Android phone.

What information will a Quantity Surveyor need?

Due to the variety of different commercial property types and the assets they contain, a specialist Quantity Surveyor is likely to ask the property owner to supply the following information when they call to arrange a depreciation schedule for their property:


Article provided by BMT Tax Depreciation.

Bradley Beer (B. Con. Mgt, AAIQS, MRICS) is the Chief Executive Officer of BMT Tax Depreciation.
Please contact 1300 728 726 or visit www.bmtqs.com.au for an Australia-wide service.