In order to maximise property depreciation deductions, it is important to understand the difference between division 40 and division 43 regulations. These two main pieces of legislation affect rates at which assets can be written off and claimed. Knowledge of the difference between division 40 and division 43 assets can assist in ensuring that deductions are maximised. This is particularly important when planning to replace any existing structures or items contained within an investment property. Division 43 Otherwise known as ‘capital works allowance’ or ‘building write-off’ – division 43 is a deduction available for the structure of the building and the items within it that are deemed irre
Maximise deductions with depreciation According to the latest statistics released by the Australian Taxation Office (ATO), 2.8 million property investors claimed deductions relating to their rental property in the 2012-2013 income year. Of these investors, just over one million received an average capital works deduction of $2,113 while almost two million investors claimed an average deduction of $1,179 for depreciation of plant and equipment, making the total average depreciation claim made by property investors who claim both in the 2012-2013 income year $3,292. When compared with statistics released by the ATO for the 2011-2012 income year, there was an increase of almost 100,000 in the t
