The latest ABS figures on Government taxes show that last financial year (2011/2012) Australians collectively paid $153.7 billion in income taxes.
Blogger: Paul Bennion, DEPPRO tax depreciation specialists
Since 2002/2003, these ABS figures show that amount of money collected by the Federal Government from income taxes has jumped by over 60%.
In addition to income taxes, the ABS figures reveal that Australians are also paying large amounts of money in property taxes to both State and Local Governments.
Last financial year, the amount of money collected in property taxes rose to $20.3 billion. Since 2002/2003, taxes collected from property have jumped by over 40%.
To reduce their taxable income, more Australians are taking advantage of legitmate tax benefits which flow from investing in property such as depreciation.
This why June and July and the busiest months of the year for DEPPRO as many property investors obtain tax depreciation reports for their investment properties to significantly reduce their taxable income.
Just one tax depreciation report for an investment property can generate thousands of dollars in potential savings in tax each year.
Over the coming weeks, a large number of investors will be making decisions to buy investment properties throughout Australia to coincide with this period.
For people in Australia who buy an investment property, they have to understand that they must undertake a tax depreciation schedule as soon as possible after settlement so that it complies with ATO guidelines.
Because June and July is the busiest time of the year for DEPPRO and to assist clients so they have a prompt service even during these busiest months, we have an online ordering system at deppro.com.au.
Clients only have to enter the post code of their property and they will get a quote for the tax depreciation schedule within a few seconds. For example, if you own an investment property in Secret Harbour (post code 6173), the online service will immediately advise you the cost of the tax depreciation schedule is $599.50.
For the initial cost of the tax depreciation report – which is tax deductible, clients can achieve thousands of dollars in tax benefits each year from their investment by legitimately claiming their full depreciation allowances.
Even an older style home can also qualify for substantial tax depreciation benefits if a depreciation schedule is undertaken around the time of settlement.
To protect their interests and ensure that they select a company that is fully compliant with ATO rulings, property investors should select a company that is a member of The Australian Institute of Quantity Surveyors (AIQS).