A General blog by .
Many high income earners buy investment property to reduce their tax bill, but fail to maximise their tax benefits through property depreciation.
Paul Bennion, Managing Director of DEPPRO, Australia’s leading tax depreciation company, said that for many years top wage earners, particularly those from the mining industry, have bought investment property to help to reduce their annual tax burden.
“Buying investment properties has traditionally been a favoured way for high income earners to create wealth while at the same time take advantage of negative gearing benefits to reduce their tax bill,” Bennion said.
“However many top earners fail to maximise these tax benefits by undertaking a tax depreciation schedule for their property.
“DEPPRO estimates that only one in five residential investors make use of their full tax depreciation entitlements.”
Bennion urges all proprety investors, especially high income earners, to gain the maximum tax advantages from property by ordering a tax depreciation report.
According to the latest figures from the Australian Bureau of Statistics people employed in the mining, electricity, gas and water services as well as those working in professional services are the highest income earners in Australia.