In the 2023-24 financial year, BMT Tax Depreciation’s latest data reveals that residential property investors saved an average of over $11,000 in first-year depreciation deductions.
These findings highlight the value of comprehensive tax depreciation schedules in maximising returns for investors, regardless of property age or past legislative changes.
According to BMT, thorough property inspections remain key to uncovering all eligible deductions.
“A detailed inspection of investment properties is crucial to identifying all possible tax benefits, including those that might otherwise be missed,” said Bradley Beer, CEO of BMT Tax Depreciation. Based on the latest ATO data, the average depreciation claims in FY 2020-2021 were $3,692. In the prior financial year, claims dropped to $3,104, while in FY 2018-2019, they averaged $3,663. These figures fall significantly short compared to the much higher average claims made by BMT Tax Depreciation clients in those same financial years.
Mr Beer states that “BMT’s meticulous approach to site inspections sets us apart and ensures our clients receive the maximum benefits they’re entitled to.”
Contrary to common misconception, older or second-hand properties built before 1987 remain eligible for substantial depreciation deductions. BMT’s recent findings highlight that properties constructed before 1987 still secured close to $4,000 in first-year deductions, debunking the myth that only newer properties can yield significant tax benefits.
Even properties affected by legislative changes in 2017, which limit claims on previously used plant and equipment assets, demonstrate impressive results. Second-hand properties ineligible for these specific deductions still achieved an average of $7,200 in first full financial year deductions, showcasing BMT’s expertise in navigating complex tax regulations to benefit investors.
The data further showed that newer properties built between 2021 and 2024 saw the highest returns, with investors receiving an impressive $16,697 in average first-year deductions. Properties built between 2017 and 2020 followed closely, averaging $8,788, while older second-hand properties built between 1987 and 2003 earned close to $6,000.
Mr Beer states, “My advice to investors is to never overlook depreciation. Disregard the notion that your property is too old or that you haven’t owned it long enough—these are just misconceptions. As our data shows, there are thousands of deductions waiting to be uncovered, even in places you might not expect.”
