NT News

Investors miss huge tax win


ALMOST half of Australia’s 2.2 million property investors are not claiming one of the most lucrative tax deductions available to landlords, raising concerns many are throwing money away.

Capital works deductions – for the declining value of a property’s bricks and mortar and other fixed assets – are only made by 52 per cent of investors, latest Australian Taxation Office data shows.

Government rule changes in 2017 banned depreciati­on deductions for items including carpets and curtains in secondhand properties but left capital works deductions untouched – a fact not understood by all investors which could cost them thousands of dollars a year.

Property Investment Profession­als of Australia chairman Peter Koulizos said some landlords thought the ban applied to all depreciati­on so didn’t bother booking a deprecatio­n report.

“They’re not aware they can claim it,” he said. “They’re paying more tax than they should.” Capital works deductions are generally available for properties built after 1987 and structural improvemen­ts after 1992.

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