Depreciation on Renovations. Do you Qualify?
If you purchased a property after 9th of May 2017 and it was not used as a rental property within 2016-2017 financial year, you are no longer entitled to claim the plant and equipment that was installed by the previous owner.
However, if you have carried out ‘substantial renovations’, then your property may be considered as new. This is great news as you can claim both capital works (i.e. the building itself) and plant and equipment (e.g. carpets, blinds, etc).
What classifies as 'Substantial Renovations'? These renovations can include, but are not limited to:
Internal wall refurbishment
Rendering of external walls
Electrical rewiring throughout
If your property was purchased prior to May 9 2017, than limitations to plant and equipment do not apply.
Have you undertaken renovations to your investment property? Leave the complexities of legislation to us! Speak to us today to determine your eligibility.