Tax Depreciation

MBM’s tax depreciation services provide our clients with the optimum depreciation entitlement.

MBM provides analysis and reporting solutions across a wide range of capital allowances and tax depreciation services which encompass legislative provisions including Division 40 Capital allowances, Division 43 Capital works deductions, repairs and maintenance expenditure, environmental expenditure and related balancing adjustments on disposal of assets.

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Property Owners
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Tax Depreciation

1. Tax depreciation and capital allowance schedules

Upon the acquisition or the completion of construction of a property, MBM prepares tax depreciation and capital allowances schedules detailing the deductions available to the taxpayer. A thorough review of the ownership of assets is conducted to provide a clear demarcation between landlord and tenant assets. We reconcile the depreciation schedules with the fixed asset additions. Projections are also provided for allowances that are available for the remaining life of the property.

Benefit: Optimised after tax return from your property investment.
2. Management of fixed asset registers

MBM reviews the capital expenditure invoices and scope of work for any capital projects expenditure since the asset register was last updated. This is incorporated into the asset register as a basis for ongoing capital expenditure analysis, end of financial year reconciliation and preparation of depreciation schedules. Effective asset register management also assists in ongoing tenancy reviews, capital expenditure forecasting, condition audits and the updating of replacement cost assessments for insurance purposes. We are able to provide online access to your asset register data via iOPS™ – Integrated Online Property Solutions.

Benefit: Compliant depreciation, optimised after tax returns, ability to analyse and plan strategically.
3. Depreciation modelling and auditing

MBM undertakes a review of existing depreciation schedules providing consistency of approach across the portfolio, bringing them up to current best practice and as a basis for claiming depreciation into the future.

Benefit: Compliant depreciation and optimised after tax returns.
4. Transaction support for acquisition, disposal and leasing

MBM provides estimates of available allowances so that tax depreciation issues are addressed comprehensively throughout the due diligence and divestment process. MBM also provides depreciation schedules for both landlords and tenants where fit out contributions are made as part of the leasing deal. These are based on asset registers which can then be appended to the lease providing clarity of ownership for the life of the lease.

Benefit: Understand the financial implications of a specific transaction. Speeds up the sales process by providing useful information to potential purchasers. Provides clarity of ownership and optimised after tax returns.