Accelerate The Depreciation Of Chattels With Your QS

When considering the purchase on a caravan park, motel or other short term accommodation property it is paramount to consider the tax deductions available through depreciation. When engaging a Quantity Surveyor to assess your property for depreciation entitlements it is important to share with them the included chattels etc. that came with the purchase under a plant / goodwill payment. These chattels could be specifically noted in the contract or sale, or not. Quantity Surveyors, who are also registered tax agents, can then accelerate the depreciate on all plant and equipment (chattels etc.) through what is known as a Division 40 deduction. Even if you have only purchased the business, and not the freehold, you have still in most scenarios purchased significant assets and/or improvements which are entitled to a depreciation claim. Have you considered the sheets, cushions, mattresses, maintenance equipment, furniture etc.?

With the recent extension of the temporary full expensing of business assets announced by the Treasurer Josh Frydenberg, all businesses with an aggregated turnover of less than $50M can claim depreciation on second-hand assets within the initial financial year of purchase – IN FULL! This could mean hundreds of thousands in tax deductions unlocked almost immediately upon settlement.

Please contact the team at GQS on 1300 290 235 if you have any questions.