S ECTION 12.
Depreciation Schedule
1 Warde Street FOOTSCRAY VIC 3011
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S ECTION 12.
Depreciation Schedule
BMT Tax Depreciation QUANTITY SURVEYORS
Level 50, 120 Collins Street Melbourne VIC 3000 GPO Box 4260 Melbourne VIC 3001 t 03 9654 2233 e info@bmtqs.com.au f 03 9654 2244 w www.bmtqs.com.au Australia Wide Service
ABN 44 115 282 392
10 July, 2018 Bensons Property Group Pty Ltd Level 3 367 Collins Street MELBOURNE VIC 3000 1 Warde Street, FOOTSCRAY VIC 3011 - 600257 Dear Sir/Madam, Please find attached the BMT Tax Depreciation Estimates for the above property detailing the depreciation and associated tax allowances that may be available to the owner under the Income Tax Assessment Act 1997 (ITAA97). This document is intended to provide a guide to the potential depreciation and building allowances available from the purchase of the above residential property, facilitating the estimation of the after tax return on the investment over the first 10 full years of ownership. 1.0 Information The following information was used in the preparation of the schedules:
§
Written and verbal information provided by Bensons Property Group Pty Ltd.
2.0 Depreciation Potential – Plant and Capital Allowance The purchaser of the property, intending to use it for income producing purposes, is entitled to depreciation including:
§ §
Division 40, Depreciation of Plant and Equipment; and Division 43, Capital Works Allowance (2.5 % pa).
The depreciation of plant and equipment items is based on the diminishing value effective life rates as published by the commissioner of taxation (2015/2). In the scenario where plant and equipment items are not sold at an agreed value these items will be depreciated on the basis of a just attribution of the total expenditure (division 40 ITAA97). 3.0 Capital Work Allowance The special building write off allowance is based on the industry specific eligible dates. If the property qualifies for the special building write off, the applicable depreciation rate will be used. Where properties do not qualify for the special building write off allowance, no capital works allowance will be used. The allowance for capital works will be based on the historical cost of construction less nondepreciable items.
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S ECTION 12.
Depreciation Schedule
BMTTax Depreciation QUANTITY SURVEYORS
4.0 Estimate Calculation This report is based on a just attribution of the total expenditure to estimate the allowances for plant. The estimates provided are based on the sale price as indicated, as the final purchase price at this time is not known. This estimate has been provided for the purpose of informing the investor of the depreciation potential. Different depreciation returns are available and are influenced by the purchase price of the property. Please note that the first year calculations are based on ownership over a full financial year. 5.0 Disclaimer This report has been based on very preliminary documentation, and the figures provided should be treated as a guide only. As documentation improves, BMT Tax Depreciation will be able to provide more accurate estimates of depreciation. 6.0 Conclusion As can be extracted from the attached tables, the units will obtain maximum depreciation potential within the first 5 years of ownership. BMT Tax Depreciation would be pleased to provide a complete detailed tax depreciation report on any of the units in the above property upon request. Our results suggest employing a specialist to maximise the various tax allowances has a significant effect on improving the after tax return. Should you or the purchaser wish to discuss the contents of this report in more detail, please do not hesitate to contact Bradley Beer at the office. Yours Sincerely,
BMT Tax Depreciation Pty Ltd Quantity Surveyors
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S ECTION 12.
Depreciation Schedule
BMTTax Depreciation QUANTITY SURVEYORS
Appendix One BMT Tax Depreciation Estimate 1 Warde Street FOOTSCRAY VIC 3011
Maximising Property Tax Depreciation Deductions
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S ECTION 12.
Depreciation Schedule
BMT Tax Depreciation
Level 50, 120 Collins Street Melbourne VIC 3000 GPO Box 4260 Melbourne VIC 3001
QUANTITY SURVEYORS
t 03 9654 2233 e info@bmtqs.com.au f 03 9654 2244 w www.bmtqs.com.au Australia Wide Service
ABN 44 115 282 392
Estimate of Depreciation Claimable Typical 1 Bedroom Apartment 1 Warde Street, FOOTSCRAY VIC 3011 Maximum
Comparison Yr 1-10 (Max & Min)
Year
Plant & Equipment
Division 43
Total
1 2 3 4 5 6 7 8 9 10 11 +
6,852 4,089 3,023 3,803 2,805 2,318 1,653 1,035 645 404 671
5,947 5,947 5,947 5,947 5,947 5,947 5,947 5,947 5,947 5,947 178,375
12,799 10,036 8,970 9,750 8,752 8,265 7,600 6,982 6,592 6,351 179,046
Total
$27,298
$237,845
$265,143
$13,000 $11,700
Minimum
$10,400 $9,100 $7,800 $6,500 $5,200 $3,900 $2,600 $1,300 $0
1
2
3 4 5 6 7 8 Years Maximum Minimum
9
10
Cumulative Yr 1-10 (Min & Max)
Year
Plant & Equipment
Division 43
Total
1 2 3 4 5 6 7 8 9 10 11 +
5,606 3,345 2,473 3,111 2,295 1,896 1,353 847 527 330 549
4,865 4,865 4,865 4,865 4,865 4,865 4,865 4,865 4,865 4,865 145,943
10,471 8,210 7,338 7,976 7,160 6,761 6,218 5,712 5,392 5,195 146,492
Total
$22,332
$194,593
$216,925
$87,000 $78,300 $69,600 $60,900 $52,200 $43,500 $34,800 $26,100 $17,400 $8,700 $0
1
2
3
4
5 6 7 8 Years Maximum Minimum
9
10
* assumes settlement on 1 July in any given year.
This is an estimate only and should not be applied or acted upon. Depreciation of plant is based on the Diminishing Value method of depreciation applying Low-Value Pooling. The Division 43 Write Off Allowance is calculated using 2.5% depending on the property type and date of construction. This estimate is based upon legislation in force at the date of report production.
This Estimate Cannot Be Used For Taxation Purposes To discuss the contents of this report please contact Bradley Beer at BMT Tax Depreciation on 03 9296 6200
Maximising Property Tax Depreciation Deductions
LIBERTY ONE SALES INFORMATION PACK
600257
SECTION 12 | 134
S ECTION 12.
Depreciation Schedule
BMT Tax Depreciation
Level 50, 120 Collins Street Melbourne VIC 3000 GPO Box 4260 Melbourne VIC 3001
QUANTITY SURVEYORS
t 03 9654 2233 e info@bmtqs.com.au f 03 9654 2244 w www.bmtqs.com.au Australia Wide Service
ABN 44 115 282 392
Estimate of Depreciation Claimable Typical 1 Bedroom + Study Apartment 1 Warde Street, FOOTSCRAY VIC 3011 Maximum
Comparison Yr 1-10 (Max & Min)
Year
Plant & Equipment
Division 43
Total
1 2 3 4 5 6 7 8 9 10 11 +
7,330 4,621 3,406 2,740 2,268 1,670 2,901 2,080 1,300 812 1,354
6,986 6,986 6,986 6,986 6,986 6,986 6,986 6,986 6,986 6,986 209,558
14,316 11,607 10,392 9,726 9,254 8,656 9,887 9,066 8,286 7,798 210,912
Total
$30,482
$279,418
$309,900
$15,000 $13,500
Minimum
$12,000 $10,500 $9,000 $7,500 $6,000 $4,500 $3,000 $1,500 $0
1
2
3 4 5 6 7 8 Years Maximum Minimum
9
10
Cumulative Yr 1-10 (Min & Max)
Year
Plant & Equipment
Division 43
Total
1 2 3 4 5 6 7 8 9 10 11 +
5,998 3,781 2,786 2,242 1,856 1,366 2,373 1,702 1,064 664 1,108
5,716 5,716 5,716 5,716 5,716 5,716 5,716 5,716 5,716 5,716 171,456
11,714 9,497 8,502 7,958 7,572 7,082 8,089 7,418 6,780 6,380 172,564
Total
$24,940
$228,616
$253,556
$99,000 $89,100 $79,200 $69,300 $59,400 $49,500 $39,600 $29,700 $19,800 $9,900 $0
1
2
3
4
5 6 7 8 Years Maximum Minimum
9
10
* assumes settlement on 1 July in any given year.
This is an estimate only and should not be applied or acted upon. Depreciation of plant is based on the Diminishing Value method of depreciation applying Low-Value Pooling. The Division 43 Write Off Allowance is calculated using 2.5% depending on the property type and date of construction. This estimate is based upon legislation in force at the date of report production.
This Estimate Cannot Be Used For Taxation Purposes To discuss the contents of this report please contact Bradley Beer at BMT Tax Depreciation on 03 9296 6200
Maximising Property Tax Depreciation Deductions
LIBERTY ONE SALES INFORMATION PACK
600257
SECTION 12 | 135
S ECTION 12.
Depreciation Schedule
BMT Tax Depreciation
Level 50, 120 Collins Street Melbourne VIC 3000 GPO Box 4260 Melbourne VIC 3001
QUANTITY SURVEYORS
t 03 9654 2233 e info@bmtqs.com.au f 03 9654 2244 w www.bmtqs.com.au Australia Wide Service
ABN 44 115 282 392
Estimate of Depreciation Claimable Typical 2 Bedroom Apartment 1 Warde Street, FOOTSCRAY VIC 3011 Maximum
Comparison Yr 1-10 (Max & Min)
Year
Plant & Equipment
Division 43
Total
1 2 3 4 5 6 7 8 9 10 11 +
7,968 5,426 3,972 3,153 2,573 1,904 1,613 1,361 1,227 2,151 3,584
8,605 8,605 8,605 8,605 8,605 8,605 8,605 8,605 8,605 8,605 258,162
16,573 14,031 12,577 11,758 11,178 10,509 10,218 9,966 9,832 10,756 261,746
Total
$34,932
$344,212
$379,144
$17,000 $15,300
Minimum
$13,600 $11,900 $10,200 $8,500 $6,800 $5,100 $3,400 $1,700 $0
1
2
3 4 5 6 7 8 Years Maximum Minimum
9
10
Cumulative Yr 1-10 (Min & Max)
Year
Plant & Equipment
Division 43
Total
1 2 3 4 5 6 7 8 9 10 11 +
6,520 4,440 3,250 2,579 2,105 1,558 1,319 1,113 1,004 1,760 2,932
7,041 7,041 7,041 7,041 7,041 7,041 7,041 7,041 7,041 7,041 211,224
13,561 11,481 10,291 9,620 9,146 8,599 8,360 8,154 8,045 8,801 214,156
Total
$28,580
$281,634
$310,214
$118,000 $106,200 $94,400 $82,600 $70,800 $59,000 $47,200 $35,400 $23,600 $11,800 $0
1
2
3
4
5 6 7 8 Years Maximum Minimum
9
10
* assumes settlement on 1 July in any given year.
This is an estimate only and should not be applied or acted upon. Depreciation of plant is based on the Diminishing Value method of depreciation applying Low-Value Pooling. The Division 43 Write Off Allowance is calculated using 2.5% depending on the property type and date of construction. This estimate is based upon legislation in force at the date of report production.
This Estimate Cannot Be Used For Taxation Purposes To discuss the contents of this report please contact Bradley Beer at BMT Tax Depreciation on 03 9296 6200
Maximising Property Tax Depreciation Deductions
LIBERTY ONE SALES INFORMATION PACK
600257
SECTION 12 | 136
S ECTION 12.
Depreciation Schedule
BMT Tax Depreciation
Level 50, 120 Collins Street Melbourne VIC 3000 GPO Box 4260 Melbourne VIC 3001
QUANTITY SURVEYORS
t 03 9654 2233 e info@bmtqs.com.au f 03 9654 2244 w www.bmtqs.com.au Australia Wide Service
ABN 44 115 282 392
Estimate of Depreciation Claimable Typical 2 Bedroom + Study Apartment 1 Warde Street, FOOTSCRAY VIC 3011 Maximum
Comparison Yr 1-10 (Max & Min)
Year
Plant & Equipment
Division 43
Total
1 2 3 4 5 6 7 8 9 10 11 +
7,988 6,345 4,607 3,604 2,903 2,152 1,804 1,537 1,121 1,097 5,876
10,234 10,234 10,234 10,234 10,234 10,234 10,234 10,234 10,234 10,234 307,016
18,222 16,579 14,841 13,838 13,137 12,386 12,038 11,771 11,355 11,331 312,892
Total
$39,034
$409,356
$448,390
$19,000 $17,100
Minimum
$15,200 $13,300 $11,400 $9,500 $7,600 $5,700 $3,800 $1,900 $0
1
2
3 4 5 6 7 8 Years Maximum Minimum
9
10
Cumulative Yr 1-10 (Min & Max)
Year
Plant & Equipment
Division 43
Total
1 2 3 4 5 6 7 8 9 10 11 +
6,536 5,191 3,769 2,948 2,375 1,760 1,476 1,257 917 897 4,808
8,374 8,374 8,374 8,374 8,374 8,374 8,374 8,374 8,374 8,374 251,195
14,910 13,565 12,143 11,322 10,749 10,134 9,850 9,631 9,291 9,271 256,003
Total
$31,934
$334,935
$366,869
$136,000 $122,400 $108,800 $95,200 $81,600 $68,000 $54,400 $40,800 $27,200 $13,600 $0
1
2
3
4
5 6 7 8 Years Maximum Minimum
9
10
* assumes settlement on 1 July in any given year.
This is an estimate only and should not be applied or acted upon. Depreciation of plant is based on the Diminishing Value method of depreciation applying Low-Value Pooling. The Division 43 Write Off Allowance is calculated using 2.5% depending on the property type and date of construction. This estimate is based upon legislation in force at the date of report production.
This Estimate Cannot Be Used For Taxation Purposes To discuss the contents of this report please contact Bradley Beer at BMT Tax Depreciation on 03 9296 6200
Maximising Property Tax Depreciation Deductions
LIBERTY ONE SALES INFORMATION PACK
600257
SECTION 12 | 137
S ECTION 12.
Depreciation Schedule
BMT Tax Depreciation
Level 50, 120 Collins Street Melbourne VIC 3000 GPO Box 4260 Melbourne VIC 3001
QUANTITY SURVEYORS
t 03 9654 2233 e info@bmtqs.com.au f 03 9654 2244 w www.bmtqs.com.au Australia Wide Service
ABN 44 115 282 392
Estimate of Depreciation Claimable Typical 3 Bedroom Apartment 1 Warde Street, FOOTSCRAY VIC 3011 Maximum
Comparison Yr 1-10 (Max & Min)
Year
Plant & Equipment
Division 43
Total
1 2 3 4 5 6 7 8 9 10 11 +
7,822 6,888 4,982 3,867 3,097 2,298 1,913 1,437 1,275 955 6,687
10,594 10,594 10,594 10,594 10,594 10,594 10,594 10,594 10,594 10,594 317,825
18,416 17,482 15,576 14,461 13,691 12,892 12,507 12,031 11,869 11,549 324,512
Total
$41,221
$423,765
$464,986
$19,000 $17,100
Minimum
$15,200 $13,300 $11,400 $9,500 $7,600 $5,700 $3,800 $1,900 $0
1
2
3 4 5 6 7 8 Years Maximum Minimum
9
10
Cumulative Yr 1-10 (Min & Max)
Year
Plant & Equipment
Division 43
Total
1 2 3 4 5 6 7 8 9 10 11 +
6,400 5,636 4,076 3,164 2,534 1,880 1,565 1,175 1,043 781 5,471
8,668 8,668 8,668 8,668 8,668 8,668 8,668 8,668 8,668 8,668 260,039
15,068 14,304 12,744 11,832 11,202 10,548 10,233 9,843 9,711 9,449 265,510
Total
$33,725
$346,719
$380,444
$141,000 $126,900 $112,800 $98,700 $84,600 $70,500 $56,400 $42,300 $28,200 $14,100 $0
1
2
3
4
5 6 7 8 Years Maximum Minimum
9
10
* assumes settlement on 1 July in any given year.
This is an estimate only and should not be applied or acted upon. Depreciation of plant is based on the Diminishing Value method of depreciation applying Low-Value Pooling. The Division 43 Write Off Allowance is calculated using 2.5% depending on the property type and date of construction. This estimate is based upon legislation in force at the date of report production.
This Estimate Cannot Be Used For Taxation Purposes To discuss the contents of this report please contact Bradley Beer at BMT Tax Depreciation on 03 9296 6200
Maximising Property Tax Depreciation Deductions
LIBERTY ONE SALES INFORMATION PACK
600257
SECTION 12 | 138