A Tax Depreciation blog by Paul Bennion.
If you thought you were paying too much tax, then you should check out the latest ABS figures on Government revenue and taxation.
They confirm that Australians now pay an extraordinarily high level of taxes.
And the importance of claiming legitimate tax deductions such as depreciation has also been highlighted by these official figures which show that Governments throughout Australia collected over $50 million in taxes every hour during the December 2015 quarter.
This high level of taxation is revealed in the latest Government Finance Statistics that show that all levels of Government in Australia collected $119.5 billion in taxes during this three month period.
This represented an increase of 17% on the $101.4 billion in total taxes collected during the September 2015 quarter. The figures show, that on average, Governments throughout Australia are now collecting around $1.3 billion in taxes every day or $54 million every hour.
With the new financial year fast approaching, these taxation figures underline the importance of all Australians claiming their legitimate tax allowances to help reduce their taxable income.
One way is to take advantage of the legitimate tax depreciation benefits that flow from investing in property. For example, an accurate tax depreciation report for an investment property can generate thousands of dollars in potential tax savings each year.
These generous tax depreciation benefits can equate to up to 60% of the property price of a property. That’s means potential tax benefits of $300,000, for example, on a property purchased for $500,000
Over the coming months, many investors will be looking at buying investment properties to coincide with the start of the new financial year.
This is particularly the case with high income earners who want to reduce their taxable income yet invest in property to create wealth.
If you buy an investment property, it is important to complete a tax depreciation schedule as soon as possible after settlement so that it complies with ATO guidelines.
For the initial cost of a tax depreciation report – which is tax deductible – by legitimately claiming their full depreciation allowances clients can achieve thousands of dollars in tax benefits each year from their investment. Even an older style home can also qualify for substantial tax depreciation benefits if a depreciation schedule is undertaken around the time of settlement.
To protect their interests and ensure the depreciation report is fully compliant with ATO rulings, property investors should select a company, like DEPPRO, that is a member of the Australian Institute of Quantity Surveyors (AIQS) and uses systems that are fully compliant with ATO rulings.