30th June 2016

Tax Time 2016

Tax Time 2016

By now you should have received your June statement and your end of financial year statement from Cale Property. If you have not received these please review your clutter or junk mail filters. If you have not already done so please add sue@caleproperty.com.au and info@caleproperty.com.au as a safe recipient to your email settings.

If this fails to find your statements please  email us to request a copy.

Ensuring you claim all your allowable tax deductions is an important part of maximising your return on your investment. You should consult your registered tax agent for specific advice regarding your individual circumstances.

Research by Cale Property Agents based on Australian Taxation Office (ATO) Statistics indicates that many landlords maybe missing out on allowable deductions. See the below table we have compiled based on ATO statistics showing the % of NSW landlords who claim certain tax deductions.

Anything less than 100% means not everyone is claiming the deduction. Little in life is ever 100% perfect but it appears there are a number of opportunities for landlords to ensure they claim all their allowable deductions.

1.       Depreciation - 61% of landlords claim a tax deduction for Plant Depreciation, only 33% claim a deductions for Capital Works. The ATO allows deductions for both plant and equipment as well as capital works. Potentially 2 out of 3 landlords are not claiming their full deductions and not maximising their returns. See our article on Depreciation for more information.

2.       Insurance - Only 71% of landlords are claiming insurance as a deduction. Are 29% of properties really uninsured or are some owners missing potential deductions?

3.       Repairs & Maintenance - Only 72% of landlords are claiming a deduction for repairs & maintenance. Do almost 30% of properties have no repairs and maintenance or are some owners missing potential deductions?

4.      Rates and Water Charges - 93% of Landlords are claiming a deduction for Rates and 81% of Landlords are claiming a deduction for water charges. 7% of landlords are not paying rates, more likely they are, just not claiming the deduction? While some properties in rural areas may not be connected to water 19% would seem high.

Some further research if you have time could be to Download the ATOs Guide on Rental Property Deductions to help you better understand potential treatment of over 230 items.

% of Landlords who claim a Tax Deduction for Rental Property in NSW