The treasurer recently announced that an asset diminishing value will be increased from 150% to 200% affective from the 10th of May 2006. Does this mean that for a new house, the capital will be depreciable over 20 years (5% pa) and fixture is about 20%pa (previously ranging from 5% – 15%)???.[specool]
Am I dream. Or he’s just too kind.
Regards
ptnI believe the changes to depreciation do not apply to investment properties.
Actually, they do. Just not the structual. ie .building but items like hotwater system is. So said my financial advicer.
This will make my cash flow a bit more attractive now.
ptn.
I have just had a depreciation schedule completed, and I put this to the serveyers. They said this would apply, but only to purchases after the date stated in the budget. A little too late for me though…but I have a Q…currently, our unit is a PPOR, and it will be “converted” to an IP in June. Even though the property was built in late 05, does the fact that it will effecttively be a newly acquired IP when we start to rent out the unit mean the new depreciation laws will apply?
Yep, it will apply to residential property.
I’m not sure whether it is correct forum behaviour, but here is a link to a discussion about this at Somersoft.
http://www.somersoft.com/forums/showthread.php?t=25785
I thought I’d post it rather than repeat everything.
Scott
Tax Depreciation Schedules
Australia wide service
1300 660033
scott@depreciator.com.au
http://www.depreciator.com.auHey Scott – what do you think to my query above?
Hi Andy,
You acquired the Assets prior to May 10 this year, so you’re out of luck. In many cases it won’t make a massive difference.
ScottTax Depreciation Schedules
Australia wide service
1300 660033
scott@depreciator.com.au
http://www.depreciator.com.au
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