Kerry Packer, one-time owner of Channel 9, multi-millionaire and father of James Packer was famous for many things. Amongst them is this quote;
“I am not evading tax in any way, shape or form. Of course, I am minimising my tax. Anybody in this country who does not minimise his tax wants his head read. I can tell you as a government that you are not spending it so well that we should be donating extra”
The year was 1991 and Kerry was answering questions at a Federal Government senate committee hearing in Canberra. In his typical blunt fashion he did not mince his words, he told it as he saw it it. We all laughed. After all, it’s true, the government often fails to spend money wisely.
But Kerry was also talking about minimising tax.
I was surprised to learn recently that as many as 80% of property investors, mostly ordinary mums and dads with a single rental property in Campbelltown may be missing out on thousands of dollars of tax deductions every year. Some of the examples I saw showed missed savings of as much as $5000 – $10,000 per annum.
These savings can be achieved by arranging a thorough tax depreciation report which can be provided to your accountant. I was not aware that only quantity surveyors can arrange such reports and the savings can be enormous.
Most people seem to think depreciation can only be claimed from new investment properties but this is not so. Many older properties qualify for lots of depreciable deductions. If you have added an extension or completed any renovations since you have owned your rental property these too can be counted when you submit your annual tax deduction. And even though your accountant may be a well-meaning qualified professional he or she may be missing deductions without an updated depreciation report.
If you would like more information on depreciation for rental properties or any other aspect of property management in Campbelltown contact Kerrie Meldrum our team leader on 4628 0033. She would love to assist you with your questions.
