Invest
New property tax tool gaining traction
With cash flow vital early in the ownership of a property, split depreciation reports have grown in popularity, enabling easier tax write-offs.

New property tax tool gaining traction
With cash flow vital early in the ownership of a property, split depreciation reports have grown in popularity, enabling easier tax write-offs.

While tax depreciation schedules have been a staple of a property investing for years, split reporting between co-owners has been enjoying new-found fame, according to quantity surveyors BMT.
“Split reporting generates more deductions because rather than just come up with a depreciation figure and splitting it in two, it actually splits the value of the asset first and then apply the tax rules,” BMT chief executive Bradley Beer told Nest Egg.
“It means lower value items get to be claimed quicker, which means more cash flow early for the investor in their property which is when it is most vital,” he added.
Where one owner is currently able to claim immediately on assets valued at $300 or below, split owners can do so for assets of up to $600, before writing off their stake in the asset.
The same rule applies to low-value pooling, enabling co-owners with a 50-50 split to include assets of less than $2,000 (instead of $1,000 for single owners) to their pool. Low-pool assets can then be claimed at an 18.75 per cent rate in the first year and 37.5 per cent afterwards.
The result is that split reporting is becoming less obscure due to growing investor awareness, although some inertia still exists.
“The number of split reports is increasing, but sometimes it is the accountant that doesn’t understand it or doesn’t necessarily want to do it, but their job is to help you get the maximum deduction [out of] the things you’re doing and help you do your tax and claim everything correctly,” Mr Beer said.
“They should work with you on it because it means slightly better deductions for people in the early years when it’s hardest because of costs and low rents.”
Given the burgeoning Australian property market, co-ownership could be an attractive option to get a foot on the property investment ladder, Mr Beer said.
“For people who don’t have the equity, doing it together with the right partner means you still have the ability to make money.”

Property
RBA’s 30% property growth forecast to materialise in 75% of regions
Experts believe that RBA’s forecasted 30 per cent growth in property prices over the next three years will materialise in 75 per cent of Aussie regions. ...Read more

Property
HomeBuilder applications soar as first-timers enter the market in record numbers
Record numbers of first home buyers are coming into the market assisted by the government’s HomeBuilder stimulus, which is expected to help spur $50 billion in economic activity. ...Read more

Property
Dual Occupancy Homes – Why They Are A Smart Investment In The Current Market
Promoted by Metricon ...Read more

Property
4 factors affecting property market trends in 2021
Following a tough 2020, property investment activity is expected to rebound strong, expanding by 50 per cent in the second half of 2021. ...Read more

Property
House prices tipped to surge 30% on the back of cheap money
According to new documents released from the Reserve Bank of Australia, persistently low interest rates could push up property prices by as much as 30 per cent. ...Read more

Property
Double-digit price growth to stick around as ‘property boom’ arrives
According to leading indicators, Australia’s property boom officially began in November, following several slow months on the back of the COVID crisis, with double-digit price growth already logged ...Read more

Property
How to turn your ‘costly’ lifestyle investment into a money-making asset
Emotionally driven holiday home buyers are being advised to seek maximum rental income and depreciation benefits to make their investments viable. ...Read more

Property
Dutch e-commerce giant VidaXL ramping up Australian operations
Netherlands-based online retailer VidaXL is ramping up its operations in Australia, by launching the build of a brand new 81,000 sq m national distribution centre in Melbourne. ...Read more

Property
RBA’s 30% property growth forecast to materialise in 75% of regions
Experts believe that RBA’s forecasted 30 per cent growth in property prices over the next three years will materialise in 75 per cent of Aussie regions. ...Read more

Property
HomeBuilder applications soar as first-timers enter the market in record numbers
Record numbers of first home buyers are coming into the market assisted by the government’s HomeBuilder stimulus, which is expected to help spur $50 billion in economic activity. ...Read more

Property
Dual Occupancy Homes – Why They Are A Smart Investment In The Current Market
Promoted by Metricon ...Read more

Property
4 factors affecting property market trends in 2021
Following a tough 2020, property investment activity is expected to rebound strong, expanding by 50 per cent in the second half of 2021. ...Read more

Property
House prices tipped to surge 30% on the back of cheap money
According to new documents released from the Reserve Bank of Australia, persistently low interest rates could push up property prices by as much as 30 per cent. ...Read more

Property
Double-digit price growth to stick around as ‘property boom’ arrives
According to leading indicators, Australia’s property boom officially began in November, following several slow months on the back of the COVID crisis, with double-digit price growth already logged ...Read more

Property
How to turn your ‘costly’ lifestyle investment into a money-making asset
Emotionally driven holiday home buyers are being advised to seek maximum rental income and depreciation benefits to make their investments viable. ...Read more

Property
Dutch e-commerce giant VidaXL ramping up Australian operations
Netherlands-based online retailer VidaXL is ramping up its operations in Australia, by launching the build of a brand new 81,000 sq m national distribution centre in Melbourne. ...Read more