As a building gets older, items wear out – they depreciate. The Australian Taxation Office (ATO) allows property owners to claim a deduction to the building and equipment items contained within it. Depreciation can be claimed by any owner of a rental or commercial property. This deduction essentially reduces the property owner’s taxable income – you pay less tax.
Our partner, Upside Accounting, can provide further information should you be interested (9575 3800).