Claim depreciation for older commercial investment properties

One of the main reasons commercial investors continually fail to take advantage of the depreciation deductions available from their property, is because they believe their property is too old to warrant making a claim.

According to Bradley Beer, the Managing Director of BMT Tax Depreciation, this myth needs to be dispelled.

“Often investors make the mistake of thinking they will not receive deductions for an older property due to the date restrictions the Australian Taxation Office (ATO) place on claiming the available capital works allowance. The reality is that any property, no matter how old the building is, will entitle its owner to valuable deductions in the form of depreciation. This is because the owner is also entitled to claim depreciation for the plant and equipment assets contained within the property,” said Brad.

Although current ATO legislation states that the owner of any commercial property built before the 20th of July 1982 cannot claim the capital works allowance as a deduction, depreciation of plant and equipment is not restricted by age. It is the condition and quality of each item which contributes to the depreciable amount.

Often older properties have also had a renovation completed to them after the legislated dates set by the ATO. These renovations will still attract the capital works allowance.

A tax depreciation schedule not only covers the capital works allowance, but also the depreciation of plant and equipment items. A specialist Quantity Surveyor will perform a site inspection of the property to identify any deductions available from plant and equipment assets and for renovations that have been completed to a property of any age.

When in doubt, commercial property investors should always seek expert advice.

BMT Tax Depreciation provides a broad range of information on their commercial property depreciation page on their website for commercial property owners.


Article provided by BMT Tax Depreciation.
Bradley Beer (B. Con. Mgt, AAIQS, MRICS) is the Managing Director of BMT Tax Depreciation.  Please contact 1300 728 726 or visit for an Australia-wide service.

Staff at BMT are also happy to discuss any property scenario free of charge and obligation free. To speak with one of their expert staff, phone 1300 728 726 today.