Tax Info
Income Tax Rates
These rates apply to individuals who meet the following criteria:
They are residents of Australia for tax purposes for the whole financial year
They did not leave full-time education for the first time during the financial year
Tax Rates 2024-25
Tax Rates 2023-24
The above rates do not include the Medicare levy of 2.0%
A simple tax calculator for individual tax payers
Company Tax Rates 2023-24
Rates of depreciation for Construction Costs (Capital Works)
Capital Works (Division 43) deductions may be available for expenditure on the construction of buildings, structural improvements, extensions, alterations or improvements. Capital Works deductions are not available for expenditure on plant & equipment and are treated separately under (Division 40).
If refurbishment or renovation work has been carried out to the property after 16 September 1987 eg: new kitchen or extensions then a capital works deductions is available.
For structural improvement such as the addition of retaining walls or pergolas then a capital works deduction is available for such improvements after 27 Feb 1992.
Common Depreciable items and their effective lives (Plant & Equipment)
You cannot claim a deduction for a depreciating asset’s decline in value if you are allowed a capital works deduction for the asset. Either one or the other.
Plant includes items that are articles within the ordinary meaning of the word. A curtain, a desk or a dishwasher would all be considered articles. A structure attached to land or forms part of the structure of the premises such as a clothes hoist or pergola would not be considered articles.
If your depreciating asset is not plant and it is fixed to or otherwise part of a building or structural improvement, your expenditure will generally be construction expenditure for capital works and only a capital works deduction may be available.
All plant & articles are deemed to have their own effective lives as determined by the tax commissioner. Even if the plant is considered old it would be considered to have some effective life as it is still in use and working order.
However changes in the May 2017 budget now mean Plant and Articles considered 2nd hand can no longer be depreciated and claimed as part of your rental expenses.
Common effective lives for some assets generally included in a property:
Low-value Pooling
An optional low-value pooling arrangement came into effect from 1 July 2001. It applies to items of plant costing less than, or having a value of less than, $1,000.
Assets allocated to a low-value pool adopt the diminishing value rate of 18.75% in the first income year that they are purchased and installed and ready for use to produce assessable income. Subsequent years the rate increases to 37.5%.
If you have already been using the diminishing value method of depreciation, then you can start up a pool at 37.5% in the initial year for existing assets.
The low-value pool has the effect of ‘accelerating’ the depreciation on low cost and low value items of plant and dramatically increases the amount of your depreciation claim.
At Write It Off we take advantage of all the tax laws available to you to legitimately maximise your depreciation claim on your investment property. We cater the report to your individual circumstances to take full benefit of all taxation rules. In fact it is our job to maximise your property depreciation claim.