Tax Depreciation

Recent ATO changes to the Tax Depreciation Laws now require Quantity Surveyors to be registered with the Tax Practitioners Board (TPB) as ‘Registered Tax Agents’. Here at Costeff we are fully qualified and registered with the TPB.


There are two parts to this service.

  1. The calculation of Capital Write-off for the ‘structural items’ (Building Allowance).
  2. The calculation of Depreciation on items such as carpet, blinds, stove, air conditioning, etc. (plant and articles).

The Building Allowance is calculated using the historic (when new) construction cost estimated by the Quantity Surveyor, which is reduced by the depreciable items of plant and articles. Plant and articles attract depreciation at a higher rate and are handled separately.

Depreciation on plant and articles is calculated on the effective life of each asset and scheduled by both the ‘Diminishing Value Method’ and the `Prime Cost Method’ for your information, when choosing which method suits your particular taxation circumstances.

The values shown against items of plant and articles as inspected on site are the estimated market values at the date when the items were first offered for use by yourself for income producing purposes.

Low value items of plant acquired after 30 June 2000 and with a value less than $1000 are pooled in a ‘Low Value Pool’ and depreciated by the diminishing value method in accordance with A.T.O. taxation rulings.

Selected items with a value less then $300 can be written off in the first year at 100%.

We now provide a 5 year summary forecast for your convenience.

Call us now for an obligation and hassle free quote or just to ask your questions about tax depreciation. Ensure your Tax Depreciation Report is carried out by a Registered Tax Agent.

Sinking Fund Forecasts & Insurance Valuations | Construction Progress Valuations