The Government reintroduced building depreciation deduction claims for commercial & industrial property owners on Tuesday at a level of 2%/year, and Bayleys valuation services director John Freeman said they’d deliver a boost worth hundreds of thousands of dollars.
The deduction allowance was part of the Government’s $12 billion Covid-19 business support package and overturned its removal in the 2011-12 tax year.
Mr Freeman said: “Since the removal of depreciation claims on commercial & industrial building structures, owners have not had the benefit of claiming in some cases several hundred thousand dollars annually, so they will welcome this latest move.
“The really good news is that it seems the reintroduction of these is permanent, and not just for the period the Government will support the economy as part of its Covid-19 stance.
“In addition, the Government has indicated that new deduction claims will be available for seismic strengthening costs at 2%/year as part of this latest move. Again, for a lot of property owners these sums are substantial.”
“In some cases, our clients are considering property purchases worth tens of millions, which will be eligible for 6-figure tax depreciation claims.”
Attribution: Agency release.