SET THE STAGE

TAKE ACTION NOW FOR THE FINANCIAL YEAR AHEAD

B Y BRADLEY BEER, BMT TAX DEPRECIATION

For most people, a new financial year means time to prepare an income tax return.

They’ll lodge their return, hopefully get a refund (or maybe have to pay some extra tax) and then forget about it until next tax time rolls around.

For property investors, it has added meaning. It’s a great time to take stock of how your investment is performing and set some things in place to ensure you’re in an even better position next tax time.

HERE ARE FIVE SMART TAX TIPS FOR THIS NEW FINANCIAL YEAR:

1. SPEAK TO YOUR FINANCIAL ADVISOR

If you haven’t spoken to your financial advisor in a while, make this financial year the time to do so.

They’ll be able to assist in reviewing the performance of your investments and advise on whether you should set new goals or adjust your current investment strategy.

It’s also a great way to get a holistic view of your finances, which can be hard to do on your own.

A good accountant or financial advisor will also ensure you’re claiming everything you’re entitled to as an investor. Speaking of which....

2. MAKE SURE YOU’RE CLAIMING ALL THE DEDUCTIONS YOU’RE ENTITLED TO

As a property investor you’re entitled to a range of tax deductions, one of which is depreciation.

Considering depreciation often sees residential investors get an average of $5,000-10,000 in deductions in the first financial year alone, it’s important to take advantage of these deductions if you want success as an investor.

Combined with all the other deductions you’re entitled to for your investment property, such as repairs and property management fees, these deductions really do add up and shouldn’t be overlooked.

Visit BMT’s tax depreciation calculator for an estimate of the deductions you may be entitled to.

3. BE SMART WITH RENOVATIONS

Are you planning on renovating your investment property in some form this coming year?

If so, you should be smart about it and realise that the assets you choose can maximise future deductions.

Selecting which assets to replace during a renovation can make a difference to future deductions. This is because each asset’s rate of depreciation is calculated based on its individual effective life.

For example, deductions available in the first full year depreciation claim for carpets, floating timber floors and tiles differ.

You can use BMT’s depreciation rate finder to calculate the effective life and depreciation rate for various plant and equipment assets.

Furthermore, if you’re planning a renovation this year, you should contact a specialist quantity surveyor before starting work. This is important during the removal or demolition of any existing structure or fixture onsite that would have been eligible to claim deductions for depreciation (division 40) or capital works deduction (division 43). These removed and scrapped assets could entitle the owner to additional claims.

An updated tax depreciation schedule may be required after a renovation to capture all newly installed plant and equipment assets or capital works expenditure.

4. KEEP ACCURATE RECORDS AND RECEIPTS

Your accountant would have told you time and time again to keep receipts of things you need to claim. This advice still stands.

One exception to this is if you’re ordering a tax depreciation schedule from BMT. In this case you don’t need receipts for work completed or new assets installed – this is what our site inspections are for.

Accurate record keeping is essential for investors – it’s a good idea to jot down conversations you’ve had and agreements you’ve made with your property manager or with your tenant if you selfmanage your property.

This is particularly important for owners of holiday rentals, who need to have accurate records of exactly how many days their property was available for rent in the past year to make legal claims.

5. CONSIDER HOW YOU CAN RE-INVEST YOUR TAX RETURN

There’s no doubt that the best part of tax time is getting a tidy tax return.

While it’s tempting to put that extra cash towards a holiday, a car or even put it into your savings, as an investor you should consider if there are better ways you can use this extra cash.

For example, you could choose to reinvest this in shares, put it towards a deposit on a new investment property to grow your portfolio, or use to it renovate or update your existing investment property, which could result in a higher weekly rent and increase the overall value of the property.

ABOUT THE CONTRIBUTOR

Article provided by BMT Tax Depreciation. Bradley Beer (B. Con. Mgt, AAIQS, MRICS, AVAA) is the Chief Executive Officer of BMT Tax Depreciation.

Please contact 1300 728 726 or visit www.bmtqs.com.au for an Australia-wide service.

SIX EASY TIPS FOR STAGING YOUR OWN HOME

There's no question that staging your décor is advantageous when you're trying to sell your home.

The strategic editing and placement of your furnishings can be enormously important to boosting its appeal. Fortunately, conducting your own staging need not be complex by following a few easy guidelines:

PRIORITISE BY ROOM 1.

You'll get the most visual impact by staging your living room, master bedrooms, kitchen and extra bedroom(s), in that order.

DE-CLUTTER 2.

Cleaning will be easier after you pack away at least 90 percent of your own décor and personal artifacts. Your goal is to create a minimally decorated space buyers can imagine moving in to.

DEEP CLEAN 3.

Everything must be groomed, sparkling and odour-free inside and out. That includes making sure all your windows are clean inside and out as this will allow all your hard work to sparkle brighter than ever!

DIVIDE AND CONQUER 4.

Plan to remove about half your furniture to give the impression of optimal space. If it's all unpresentable, use stylish rental pieces or fake "pop-up furniture" for showings. Tip: Wherever possible, move display furniture away from walls (a technique known as "fl oating") to create groupings that are tied together visually with area rugs.

ACCESSORISE INSIDE AND OUT 5.

Create an atmosphere of airiness, friendliness and cheer by selectively adding new fl owers, potted plants, attractive seating and welcome mats outside, perhaps fresh fl owers and bowls of fruit inside.

OPTIMISE LIGHT 6.

Add brighter light bulbs, pull back or remove curtains, clean windows and clean (or perhaps update) light fi xtures to add to the overall impression of positivity.

Moving? Leave it to us

Since 2004 we’ve partnered with Australia’s leading suppliers to bring you a convenient and seamless move-in, lights-on experience.

Simple and convenient One-call convenience. In 10 minutes, we can arrange to connect all 6 services.

Our service is free You get connected by a member of our Australiabased team, absolutely free of charge.

Our Promise to you We guarantee that your electricity and gas will be connected on your agreed move-in date*.

* Terms and conditions apply. Full details at onthemove.com.au

Connect six services in just one call

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ENERGY SAVING MYTH BUSTING

B Y ON THE MOVE

We all know saving energy is good for your hip pocket and the environment, but the question is, what do you actually have to do to be energy effi cient? Here are fi ve of the most persistent energy-saving myths fl oating around today.

Energy-rated appliances always help you save.

Contrary to what you might think, buying an appliance with a high energy rating won’t automatically save you more on energy. The truth is, you can compromise your appliance’s energy-reducing features if you use it the wrong way. Plus, if you install it incorrectly, position it in a less than optimal place, or fail to maintain it, your energy-rated appliance could end up costing as much if not more to run. Follow the manufacturer’s instructions and maintain it as directed.

Electrical space heaters are better than the thermostat.

While you might think using electrical space heaters in one or two spaces is better than heating the whole house or offi ce, those electric heaters consume a signifi cant amount of power. In a lot of cases, you’d probably be better off setting the thermostat to a moderate setting and putting on an extra layer of clothing.

New homes are always energy efficient.

The energy-effi ciency rating of a home depends on its design and not its age. Newer homes, if not well designed, can be more energy-intensive than older homes. If you’re buying a new house, don’t assume it’s going to be energy effi cient. Look to the design and features to work out how your home rates on energy effi ciency.

Max the thermostat to heat your home faster.

Setting the thermostat to the maximum temperature or a higher temperature won’t heat your spaces any faster than if you set it to your usual setting. It takes the same amount of time to heat your house whether you turn it to a higher temperature or a moderate one. So the next time you’re tempted to max your thermostat on a freezing day, don’t. Set it to your ideal temperature instead.

Hand washing dishes saves more energy than the dishwasher.

Dishwashers are actually more energy-effi cient than hand washing. They use less water and therefore less energy (if you wash with hot water). In addition, you’ll probably end up with cleaner plates with your dishwasher, since studies have found dishwashers clean dishes more effectively.

While the jury may still be out on some energy saving tips, On the Move offers a guaranteed time saving tip - take the stress out of your move with and let us manage your utility connections. In a single 10-minute call you can get up to 6 services arranged. Then you can focus your energy on more interesting things!

ABOUT THE CONTRIBUTOR

On the Move is Australia’s leading service connections specialist providing a one-stop service for electricity, gas, phone, internet, pay TV and insurance.

Since 2004 On The Move has partnered with Real Estate agencies and other organisations to give their customers a convenient and seamless move-in, lights-on experience.

https://www.onthemove.com.au/