matt turner qs services property depreciation

Matt Turner QS Services Property Depreciation

Matt Turner QS Services 2 Old Bathurst Rd Woodford NSW 2778 ABN 52 510 720 864 047777 1956 [email protected] www.mattqs.com.au

Schedule of Depreciation and Capital Allowances

100 Tax Return Rd

Rental Town

NSW

Report for: Investor

Report Date: 18 December 2015



Contents

Tax Depreciation Schedule

• Introduction

• Basis of Report

• Information and Assumptions

• Disclaimer

• Schedule Calculation Notes

• ATO Definitions

• Record Keeping

Appendix

Appendix A - Tax Depreciation Schedule Summary

Appendix B - Tax Depreciation Schedule Worksheets

Appendix C – Capital Improvement and Asset Cost Estimate Worksheets

Appendix D - Site Photographs



Introduction

Thank you for engaging Matt Turner QS Services to complete a schedule of

depreciation and capital allowance for your property located at 100 Tax Return

Rd, Rental Town, NSW

This report provides an independent analysis of the amount of expenses for

decline in value of assets and capital works deductions available under the

Income Tax Assessment Act 1997 (ITAA 1997).

This schedule has been prepared on the understanding that:

• you have a 100% owner interest in the property;

• you are the holder of all items listed in the schedules;

• the property is used for the purpose of producing assessable income

• you are not carrying on a business from the rental activity.

IMPORTANT NOTE - OWNERSHIP OF RENTAL PROPERTY

Co-owners who are not carrying on a rental property business must divide

the income and expenses for the rental property in line with their legal interest

in the property. If you own the property as a joint tenant, you each hold an

equal interest in the property. If you own the property as tenants in common,

you may hold unequal interests in the property, for example, one may hold a

20% interest and the other an 80% interest.

Rental income and expenses must be attributed to each co-owner according to

their legal interest in the property, despite any agreement between co-owners,

either oral or in writing, stating otherwise.

This report is based on 100% ownership of the client. If this is not the case now

or in the future this report will be inaccurate



Basis of Report

The purpose of this report is to provide an independent analysis of the of the

amount of expenses for decline in value of assets and capital works deductions

value relating to the above property in accordance with the Income Tax

Assessment Act 1997, as instructed by Investor

Where the owner is unable to determine precisely the construction expenditure

associated with a building, an estimate provided by an appropriately qualified

person may be used.

Matt Turner QS Services are qualified as required by Income Tax Ruling 97/25 to

provide estimates of original construction costs for the purposes of claiming

depreciation and the construction expenditure.

Construction Expenditure deduction is for expenditure incurred in the

construction of a building and will include such items as:

• preliminary expenses such as architects’ fees, engineering fees and the

cost of foundation excavations

• payments to carpenters, bricklayers and other tradespeople for

construction of the building

• payments for the construction of retaining walls, fences and in-ground

swimming pools.

The Construction Expenditure excludes such items as;

• Land acquisition

• Building works commenced prior to 18 July 1985

• Structural improvement works commenced prior to 27 February 1992

• Legal Fees

• Authorities’ headwork’s charges

• Stamp Duty

• Site preparation prior to carrying out detailed excavation

• Demolition of existing structures, etc. on the site

• Soft Landscaping

• Developer’s Profit

Please advise Matt Turner QS Services of any actual costs in whole or part

thereof that are available prior to the preparation of the Capital Allowance and

Tax Depreciation Schedule.



Where costs have been provided, they have been used and noted as such in this

schedule.

When costs are not available, Matt Turner QS Services has estimated a fair

market value based on reasonable and industry excepted construction cost

guides.

If necessary, all cost estimates are adjusted to that of the historical date in

which the actual construction or installation took place.

Both the Diminishing Value and Prime Cost depreciation methods have been

calculated in this schedule. It is the Owner’s responsibility to discuss each with

their financial advisor in order to select the most appropriate method



Information and Assumptions

Information

The following information has been used in the preparation of the Capital

Allowance and Tax Depreciation Schedule:

• Written and verbal information provided by Investor

• Construction Date - 12 September 2001

• Capital Improvements were completed in Sept 14 and property was

available for rental from the 1st October 14.

• Drawings were unavailable so a detailed measure of the property was

undertaken.

• Site Inspection carried out 14th December 2014

• Cost Estimates based on Cordell Direct Residential Building database.

• Report makes use of ATO Guide to Rental Properties 2015

• Report makes use of AT Guide to depreciating Assets 2015

Assumptions

The following assumptions have been made in the preparation of the Capital

Allowance and Tax Depreciation Schedule.

• That all items of plant and equipment listed in the schedule are 100% held

by the tax payer

• Assumes Investor is sole holder of assets

• Assume all assets are new and valued at reasonable market prices

• That you are not entitled to input tax credits and therefore GST is included

in the appropriate items within the schedule

• That no schedule of depreciation allowances existed or formed a condition

of the purchase documentation

• Qualifying expenditure and depreciation rates have been calculated with

the understanding that the property is used for the production of

assessable income, excluding short-term traveler’s accommodation or

non-residential usage

• The owners are not carrying on a rental property business

Owners are advised to discuss and confirm the above assumptions with their Tax

Adviser prior to using this Capital Allowance and Tax Depreciation Schedule



DISCLAIMER

This report is prepared by Matt Turner QS Services as Construction Cost

Consultants and includes actual or estimated values for items which may be

depreciable under the relevant tax legislation.

The report does not provide tax advice and the tax payer must discuss the

contents of this report with a tax advisor prior to using the information in a tax

return.

The report relates only to the current owner of the property.

SCHEDULE CALCULATION NOTES

Division 43 Deductions for Capital Works – Building and Improvements

Division 43 Capital Works Allowances are calculated in the following manner:

• Periodic rates of depreciation have been established by the Australian

Taxation Office. The rates are set at either 4% or 2.5% and give an

annual deduction based on original construction cost.

• The rates apply to the date of construction and the intended purpose of

the building, are constant and would generally be spread over a period of

25 or 40 years.

• The amount of the deduction you can claim depends on the type of

construction and the date construction started.

• Where construction costs are unknown, the ATO allows Quantity

Surveyors to calculate historic construction costs (tax ruling 97/25). An

estimate based on the original building specifications is sometimes

required.

• Any renovations carried out by previous owners of the property can be

depreciated, providing they qualify under the relevant dates as specified

by the ATO. Matt Turner QS Services can assist in the estimation of such

works.



Division 43 Deductions for Capital Works – Structural Improvements

• The Capital Works Allowance table is calculated on the historical

construction costs of the eligible capital improvements as per Division 43

of the Income Tax Assessment Act 1997.

• For items to apply, the capital works must have begun after 26 February

1992.

• Structural improvements include items such as, but not limited to;

o Fencing

o Paving

o Sealed Driveways

o Retaining Walls

o Pergola’s

o Swimming Pools

Division 40 Plant and Equipment Allowances

Division 40 is the legislation that covers the deductions allowable for the decline

in value of “plant and equipment” (depreciating assets, i.e. the removable

fixtures and fittings within a rental property).

The deduction for decline in value of Plant and equipment items are depreciated

at an annual rate based on their effective life as set by the ATO (TR2007/3).

Matt Turner QS Services have assessed all eligible plant and equipment items in

accordance with the ITAA 1997 requirements and each item has been estimated

as at the date of tenancy by having regard to market value in consideration of

its new replacement cost and relative age/condition.

The deduction for the decline in value of a depreciating asset uses either the

prime cost or diminishing value method.

Matt Turner QS Services uses both methods and are based on the effective life

of the asset.

The diminishing value method assumes that the decline in value each year is a

constant proportion of the remaining value and produces a progressively smaller

decline over time. The Diminishing Value Method allows a greater portion of the



asset to be depreciated in the earlier years of ownership. This method is

commonly adopted by investors with a short term strategy

The prime cost method assumes that the value of a depreciating asset

decreases uniformly over its effective life. Using the Prime Cost Method, you

claim a lower but more constant portion of the available deductions over the life

of the property. This method particularly suits investors who hold the property

for the longer term.

Effective life is as per ATO Guide to depreciating Assets 2015

It is advised that you discuss with your accountant or financial advisor which

method of depreciation best suits your financial requirements.



ATO DEFINITIONS

Adjustable value: A depreciating asset’s adjustable value at a particular time is

its cost (first and second elements) less any decline in value up to that time.

The opening adjustable value of an asset for an income year is generally the

same as its adjustable value at the end of the previous income year.

Cost: The cost of a depreciating asset includes the first and second elements of

cost.

Decline in value: Deductions for the cost of a depreciating asset are based on

the decline in value.

Depreciating asset: A depreciating asset is an asset that has a limited effective

life and can reasonably be expected to decline in value over the time it is used.

Effective life: Generally, the effective life of a depreciating asset is how long it

can be used by any entity for a taxable purpose or for the purpose of producing

exempt income or non-assessable non-exempt income:

• having regard to the wear and tear from your expected circumstances of

use

• assuming it will be maintained in reasonably good order and condition,

and n having regard to the period within which it is likely to be scrapped,

sold for no more than scrap value or abandoned.

First element of cost: The first element of cost is, broadly, the amount paid

(money or the market value of property given) or the amount taken to have

been paid to hold the asset. It also includes amounts incurred after 30 June

2005 that are taken to have been paid for starting to hold the asset. The

amounts must be directly connected with holding the asset.

Holder: Only a holder of a depreciating asset may deduct an amount for its

decline in value. In most cases, the legal owner of a depreciating asset will be its

holder

Indexation: Indexation is a methodology used in calculating a cost for capital

gains tax for depreciating assets acquired before 21 September 1999 that have

been used partly for a private purpose.

Low-value pooling: From 1 July 2000, an optional low-value pooling

arrangement for plant was introduced. It applied to certain plant costing less

than $1,000 or having an un-deducted cost of less than $1,000.



Low-cost assets: A low-cost asset is a depreciable asset that has an opening

value of less than $1,000 in the year of acquisition.

Plant and equipment items: Depreciation can be claimed for assets

recognised as plant and equipment items by current Australian Taxation Office

legislation. Each asset is assigned an effective life by the Australian Taxation

Office and is depreciated based on this effective life. Some examples of plant

and equipment assets include carpet, blinds, ovens as well as less obvious items

such as door closers.

Second element of cost: The second element of cost is, broadly, the amount

paid (money or the market value of property given) or the amount taken to have

been paid to bring the asset to its present condition and location at any time,

such as the cost incurred to improve the asset. It also includes expenses

incurred after 30 June 2005 on a balancing adjustment event occurring for the

asset, such as advertising or commission expenses.

Start time: A depreciating asset’s start time is generally when you first use it

(or install it ready for use) for any purpose, including a private purpose.

Taxable purpose: A taxable purpose is the purpose of producing assessable

income, the purpose of exploration or prospecting, the purpose of mining site

rehabilitation, or environmental protection activities.

Taxable use percentage: This is the proportion of your use of a particular

depreciating asset for a taxable purpose.

Termination value: Generally, the termination value is what you receive or are

taken to receive for an asset as a result of a balancing adjustment event. For

example, the proceeds from selling an asset would be the asset’s termination

value

Cost base adjustments for capital works deductions: In working out a capital gain or capital loss from a rental property, the cost base and reduced cost base of the property may need to be reduced to the extent that it includes construction expenditure for which you have claimed or can claim a capital works deduction.



RECORD KEEPING

You should keep records of both income and expenses relating to your rental

property.

Records of rental expenses must be in English, or be readily translatable into

English, and include the:

• name of the supplier

• amount of the expense

• nature of the goods or services

• date the expense was incurred

• date of the document.

If a document does not show the payment date you can use independent

evidence, such as a bank statement, to show the date the expense was incurred.

You must keep records of your rental income and expenses for five years from

31 October or, if you lodge later, for five years from the date you lodge your tax

return. If at the end of this period you are in a dispute with us that relates to

your rental property, you must keep the relevant records until the dispute is

resolved.

PLEASE NOTE: You can claim an immediate deduction for this QS expense.



APPENDIX A

Tax Depreciation Schedule Summaries

Diminishing Value and Prime Cost Methods

Depreciation Summary (Prime Cost)

The following summary table indicates the depreciable allowances for the

property using the Prime Cost Method.

The depreciation may be claimed from the date the assets became income

producing.

This report covers the period from the date the improvements were completed

and the property became available for rental and extends for a 40-year term.

We advise that you discuss with your accountant or financial adviser, which of

these methods to adopt.

Depreciation Summary (Diminishing Value)

The following summary table indicates the depreciable allowances for the

property using the Diminishing Value Method.

The depreciation may be claimed from the date the assets became income

producing.

This report covers the period from the date the improvements were completed

and the property became available for rental and extends for a 40-year term.

We advise that you discuss with your accountant or financial adviser, which of

these methods to adopt.

100 Tax Return Road, Rental Town NSW for Investor

YearDate

From To

Pooled

Plant

Div 40

PC

Div 43

Cap AllDiv 43 CI Total

1 Jul-14 Jun-15 364 1,677 2,695 1,843 6,579

2 Jul-15 Jun-16 591 2,404 2,688 2,627 8,309

3 Jul-16 Jun-17 369 2,397 2,688 3,285 8,739

4 Jul-17 Jun-18 231 2,397 2,688 3,285 8,600

5 Jul-18 Jun-19 144 2,397 2,695 3,285 8,521

6 Jul-19 Jun-20 90 2,402 2,688 3,292 8,471

7 Jul-20 Jun-21 56 2,397 2,688 3,285 8,426

8 Jul-21 Jun-22 35 2,397 2,688 3,285 8,405

9 Jul-22 Jun-23 22 2,397 2,695 3,285 8,399

10 Jul-23 Jun-24 14 2,402 2,688 3,292 8,395

11 Jul-24 Jun-25 9 1,880 2,688 3,285 7,861

12 Jul-25 Jun-26 5 1,710 2,688 3,285 7,687

13 Jul-26 Jun-27 3 1,234 2,695 3,285 7,217

14 Jul-27 Jun-28 2 1,084 2,688 3,292 7,065

15 Jul-28 Jun-29 1 1,081 2,688 3,285 7,055

16 Jul-29 Jun-30 1 497 2,688 3,285 6,470

17 Jul-30 Jun-31 1 - 2,695 3,285 5,980

18 Jul-31 Jun-32 - - 2,688 3,292 5,979

19 Jul-32 Jun-33 - - 2,688 3,285 5,972

20 Jul-33 Jun-34 - - 2,688 3,285 5,972

21 Jul-34 Jun-35 - - 2,695 3,285 5,980

22 Jul-35 Jun-36 - - 2,688 3,292 5,979

23 Jul-36 Jun-37 - - 2,688 3,285 5,972

24 Jul-37 Jun-38 - - 2,688 3,285 5,972

25 Jul-38 Jun-39 - - 2,695 3,285 5,980

26 Jul-39 Jun-40 - - 2,688 3,292 5,979

27 Jul-40 Jun-41 - - 2,688 3,285 5,972

28 Jul-41 Jun-42 - - 243 3,285 3,528

29 Jul-42 Jun-43 - - - 3,285 3,285

30 Jul-43 Jun-44 - - - 3,292 3,292

31 Jul-44 Jun-45 - - - 3,285 3,285

32 Jul-45 Jun-46 - - - 3,285 3,285

33 Jul-46 Jun-47 - - - 3,285 3,285

34 Jul-47 Jun-48 - - - 3,292 3,292

35 Jul-48 Jun-49 - - - 3,285 3,285

36 Jul-49 Jun-50 - - - 3,285 3,285

37 Jul-50 Jun-51 - - - 3,285 3,285

38 Jul-51 Jun-52 - - - 3,292 3,292

39 Jul-52 Jun-53 - - - 3,285 3,285

40 Jul-53 Jun-54 - - - 3,220 3,220

41 Jul-54 Jun-55 - - - 1,354 1,354

42 Jul-55 Jun-56 - - - 665 665

1,939 30,753 72,857 131,311 236,860

Prime Cost Method Summary

100 Tax Return Road, Rental Town NSW for Investor

YearDate

From To

Pooled

Plant

Div 40

DV

Div 43

Cap AllDiv 43 CI Total

1 Jul-14 Jun-15 364 3,234 2,695 1,843 8,136

2 Jul-15 Jun-16 591 4,291 2,688 2,627 10,196

3 Jul-16 Jun-17 695 3,274 2,688 3,285 9,942

4 Jul-17 Jun-18 761 2,761 2,688 3,285 9,494

5 Jul-18 Jun-19 475 2,331 2,695 3,285 8,786

6 Jul-19 Jun-20 297 1,971 2,688 3,292 8,247

7 Jul-20 Jun-21 186 1,666 2,688 3,285 7,824

8 Jul-21 Jun-22 274 1,270 2,688 3,285 7,516

9 Jul-22 Jun-23 487 938 2,695 3,285 7,405

10 Jul-23 Jun-24 613 640 2,688 3,292 7,232

11 Jul-24 Jun-25 533 554 2,688 3,285 7,059

12 Jul-25 Jun-26 333 480 2,688 3,285 6,786

13 Jul-26 Jun-27 208 416 2,695 3,285 6,604

14 Jul-27 Jun-28 130 361 2,688 3,292 6,470

15 Jul-28 Jun-29 81 312 2,688 3,285 6,366

16 Jul-29 Jun-30 224 147 2,688 3,285 6,344

17 Jul-30 Jun-31 493 - 2,695 3,285 6,473

18 Jul-31 Jun-32 487 - 2,688 3,292 6,466

19 Jul-32 Jun-33 304 - 2,688 3,285 6,277

20 Jul-33 Jun-34 190 - 2,688 3,285 6,163

21 Jul-34 Jun-35 119 - 2,695 3,285 6,099

22 Jul-35 Jun-36 74 - 2,688 3,292 6,053

23 Jul-36 Jun-37 46 - 2,688 3,285 6,018

24 Jul-37 Jun-38 28 - 2,688 3,285 6,001

25 Jul-38 Jun-39 17 - 2,695 3,285 5,997

26 Jul-39 Jun-40 11 - 2,688 3,292 5,990

27 Jul-40 Jun-41 7 - 2,688 3,285 5,979

28 Jul-41 Jun-42 4 - 243 3,285 3,532

29 Jul-42 Jun-43 3 - - 3,285 3,288

30 Jul-43 Jun-44 2 - - 3,292 3,293

31 Jul-44 Jun-45 - - - 3,285 3,285

32 Jul-45 Jun-46 - - - 3,285 3,285

33 Jul-46 Jun-47 - - - 3,285 3,285

34 Jul-47 Jun-48 - - - 3,292 3,292

35 Jul-48 Jun-49 - - - 3,285 3,285

36 Jul-49 Jun-50 - - - 3,285 3,285

37 Jul-50 Jun-51 - - - 3,285 3,285

38 Jul-51 Jun-52 - - - 3,292 3,292

39 Jul-52 Jun-53 - - - 3,285 3,285

40 Jul-53 Jun-54 - - - 3,220 3,220

41 Jul-54 Jun-55 - - - 1,354 1,354

42 Jul-55 Jun-56 - - - 665 665

8,039 24,645 72,857 131,311 236,852

Diminishing Value Method Summary



APPENDIX B

Tax Depreciation Schedule Worksheets

• Division 43 Capital Works – Building

• Division 43 Capital Works – Capital Improvements

• Division 40 – Plant & Equipment Diminishing Value

• Division 40 – Plant & Equipment Prime Cost

• Division 40 – Low Value Pool



Part 1: Capital Works Allowance (Building & Improvements)

Where construction costs are unknown, the ATO allows Quantity Surveyors or

suitably qualified personnel to calculate historic construction costs (tax ruling

97/25).

The building costs below are for the main building and any building extensions or

additions constructed after 18th July 1985. The corresponding depreciating rate

for that particular period has been applied.

Matt Turner QS Services has established the following regarding the property:

Completion Date: 11th September 2001

Start Date: 12th September 2001

Capital works expenditure: $107,500

Rate of Deduction per Year: 2.5%

Years deduction claimed for: 40 years

Tax Grouping

Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10

Jul-01 Jul-02 Jul-03 Jul-04 Jul-05 Jul-06 Jul-07 Jul-08 Jul-09 Jul-10

to to to to to to to to to to

Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11

Capital Allowance - Building 12-Sep-01 107,500 40 2.50% 322 2371 2695 2688 2688 2688 2695 2688 2688 2688 2695

Yearly Depreciation Total 107,500 2,371 2,695 2,688 2,688 2,688 2,695 2,688 2,688 2,688 2,695

Division 43 - Captial Allowance

Prime Cost Method

Item Description Start Time

Total

Installed

Cost $

Effective

Life

Prime

Cost

Rate %

1st Year

Days

held

Depreciation Allowance

Tax Grouping

Y11 Y12 Y13 Y14 Y15 Y16 Y17 Y18 Y19 Y20







Prime Cost Method


Total

Installed

Cost $

Effective

Life

Prime

Cost

Rate %

1st Year

Days

held

Tax Grouping

Y21 Y22 Y23 Y24 Y25 Y26 Y27 Y28 Y29 Y30







Prime Cost Method


Total

Installed

Cost $

Effective

Life

Prime

Cost

Rate %

1st Year

Days

held

Tax Grouping

Y31 Y32 Y33 Y34 Y35 Y36 Y37 Y38 Y39 Y40 Y41

Jul-31 Jul-32 Jul-33 Jul-34 Jul-35 Jul-36 Jul-37 Jul-38 Jul-39 Jul-40 Aug-40

to to to to to to to to to to to

Jun-32 Jun-33 Jun-34 Jun-35 Jun-36 Jun-37 Jun-38 Jun-39 Jun-40 Jun-41 Jul-41

Capital Allowance - Building 12-Sep-01 107,500 40 2.50% 322 2688 2688 2688 2695 2688 2688 2688 2695 2688 2688 243

Yearly Depreciation Total 107,500 2,688 2,688 2,688 2,695 2,688 2,688 2,688 2,695 2,688 2,688 243


Prime Cost Method


Total

Installed

Cost $

Effective

Life

Prime

Cost

Rate %

1st Year

Days

held

Tax Grouping

Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10




Demolish deck/add new deck and staircase 01-Oct-14 25,249 40 2.50% 273 472 633 631 631 631 633 631 631 631 633

Wood effect tiles to verandah 01-Oct-14 3,330 40 2.50% 273 62 83 83 83 83 83 83 83 83 83

Removal of kitchen walls 01-Oct-14 1,913 40 2.50% 273 36 48 48 48 48 48 48 48 48 48

Built-in wardrobes 01-Oct-14 4,078 40 2.50% 273 76 102 102 102 102 102 102 102 102 102

New kitchen cabinetry, sink and top 01-Oct-14 8,408 40 2.50% 273 157 211 210 210 210 211 210 210 210 211

Bathroom renovation 01-Oct-14 15,661 40 2.50% 273 293 393 392 392 392 393 392 392 392 393

Shower & laundry room renovation 01-Oct-14 17,611 40 2.50% 273 329 441 440 440 440 441 440 440 440 441

Under house storage 01-Oct-14 3,500 40 2.50% 273 65 88 88 88 88 88 88 88 88 88

New lighting 01-Oct-14 2,937 40 2.50% 273 55 74 73 73 73 74 73 73 73 74

Re-paint house 01-Oct-14 8,288 40 2.50% 273 155 208 207 207 207 208 207 207 207 208

Ducted Air - ducts, vents (excl. Div 40) 01-Oct-14 4,100 40 2.50% 273 77 103 103 103 103 103 103 103 103 103

Electrical Switch/meter box and new wiring 01-Dec-12 3,500 40 2.50% 273 65 88 88 88 88 88 88 88 88 88

Double garage 01-Feb-16 32,820 40 2.50% 150 155 821 821 821 821 821 821 821 821


Prime Cost Method


Total

Installed

Cost $

Effective

Life

Prime

Cost

Rate %

1st Year

Days

held

Depreciation AllowanceDivision 43 - Capital Improvements

Tax Grouping

Y11 Y12 Y13 Y14 Y15 Y16 Y17 Y18 Y19 Y20












New lighting 01-Oct-14 2,937 40 2.50% 273 73 73 73 74 73 73 73 74 73 73




Double garage 01-Feb-16 32,820 40 2.50% 150 821 821 821 821 821 821 821 821 821 821


Prime Cost Method


Total

Installed

Cost $

Effective

Life

Prime

Cost

Rate %

1st Year

Days

held


Tax Grouping

Y21 Y22 Y23 Y24 Y25 Y26 Y27 Y28 Y29 Y30












New lighting 01-Oct-14 2,937 40 2.50% 273 73 74 73 73 73 74 73 73 73 74




Double garage 01-Feb-16 32,820 40 2.50% 150 821 821 821 821 821 821 821 821 821 821


Prime Cost Method


Total

Installed

Cost $

Effective

Life

Prime

Cost

Rate %

1st Year

Days

held


Tax Grouping

Y31 Y32 Y33 Y34 Y35 Y36 Y37 Y38 Y39 Y40 Y41 Y42

Jul-44 Jul-45 Jul-46 Jul-47 Jul-48 Jul-49 Jul-50 Jul-51 Jul-52 Jul-53 Jul-54 Aug-54

to to to to to to to to to to to to

Jun-45 Jun-46 Jun-47 Jun-48 Jun-49 Jun-50 Jun-51 Jun-52 Jun-53 Jun-54 Jun-55 Jul-55

Demolish deck/add new deck and staircase 01-Oct-14 25,249 40 2.50% 273 631 631 631 633 631 631 631 633 631 631 142

Wood effect tiles to verandah 01-Oct-14 3,330 40 2.50% 273 83 83 83 83 83 83 83 83 83 83 19

Removal of kitchen walls 01-Oct-14 1,913 40 2.50% 273 48 48 48 48 48 48 48 48 48 48 11

Built-in wardrobes 01-Oct-14 4,078 40 2.50% 273 102 102 102 102 102 102 102 102 102 102 23

New kitchen cabinetry, sink and top 01-Oct-14 8,408 40 2.50% 273 210 210 210 211 210 210 210 211 210 210 47

Bathroom renovation 01-Oct-14 15,661 40 2.50% 273 392 392 392 393 392 392 392 393 392 392 88

Shower & laundry room renovation 01-Oct-14 17,611 40 2.50% 273 440 440 440 441 440 440 440 441 440 440 99

Under house storage 01-Oct-14 3,500 40 2.50% 273 88 88 88 88 88 88 88 88 88 88 20

New lighting 01-Oct-14 2,937 40 2.50% 273 73 73 73 74 73 73 73 74 73 73 16

Re-paint house 01-Oct-14 8,288 40 2.50% 273 207 207 207 208 207 207 207 208 207 207 47

Ducted Air - ducts, vents (excl. Div 40) 01-Oct-14 4,100 40 2.50% 273 103 103 103 103 103 103 103 103 103 103 23


Double garage 01-Feb-16 32,820 40 2.50% 150 821 821 821 821 821 821 821 821 821 821 821 665

Yearly Depreciation Total 131,395 3,285 3,285 3,285 3,292 3,285 3,285 3,285 3,292 3,285 3,220 1,354 665

Prime Cost Method


Total

Installed

Cost $

Effective

Life

Prime

Cost

Rate %

1st Year

Days

held




Part 2: Capital Works Allowance (Structural Improvement)

As per Building work, where Capital improvement construction costs are

unknown, the ATO allows Quantity Surveyors or suitably qualified personnel to

calculate historic construction costs (tax ruling 97/25).

The calculations below are for the various capital improvements of the subject

property, which are eligible for capital works allowances. Structural

improvements must be constructed after 27th February 1992 to comply

NOTE: No structural improvements have been included in this report



Part 3: Plant & Equipment (Prime Cost Method)

Matt Turner QS Services have identified the following plant and equipment

through onsite inspection of the property.

The items have been estimated as at the date of the property became available

for tenancy and at a prime cost rate applied in accordance with the Income Tax

Assessment Act 1997 TR2007/3.

Items with an assessed value of less than $300 qualify for an immediate full

deduction these items have been listed and treated accordingly.

Part 4: Plant & Equipment (Diminishing Value Method)

Matt Turner QS Services have identified the following plant and equipment

through onsite inspection of the property.

The items have been estimated as at the date available for tenancy and at

diminishing value rate applied in accordance with the Income Tax Assessment

Act 1997 TR2007/3.

Items with an assessed value of less than $300 qualify for an immediate full

deduction these items have been listed and treated accordingly.

Items with an opening adjustable value for the current year of less than $1,000

have been transferred to the Low Value Pool

Part 5: Low Value Pool

Part 3: Plant & Equipment (Prime Cost Method)

Tax Grouping

Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11 Y12 Y13 Y14 Y15 Y16

Jul-14 Jul-15 Jul-16 Jul-17 Jul-18 Jul-19 Jul-20 Jul-21 Jul-22 Jul-23 Jul-24 Jul-25 Jul-26 Jul-27 Jul-28 Jul-29

to to to to to to to to to to to to to to to to

Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 Jun-21 Jun-22 Jun-23 Jun-24 Jun-25 Jun-26 Jun-27 Jun-28 Jun-29 Jun-30

Floor coverings - floating floor 01-Oct-14 9,116 15 6.67% 273 455 609 608 608 608 609 608 608 608 609 608 608 608 609 608 147

Floor coverings - carpet 01-Oct-14 5,625 10 10.00% 273 421 564 563 563 563 563 563 563 563 563 140

Westinghouse 90cm SS rangehood 01-Oct-14 1,219 12 8.33% 273 76 102 102 102 102 102 102 102 102 102 102 102 25

Westinghouse 90cm electric oven 01-Oct-14 3,449 12 8.33% 273 215 288 287 287 287 288 287 287 287 288 287 287 70

Westinghouse 90cm induction cooktop 01-Oct-14 2,874 12 8.33% 273 179 240 240 240 240 240 240 240 240 240 240 240 58

Delounghi SS dishwasher 01-Oct-14 1,250 10 10.00% 273 93 125 125 125 125 125 125 125 125 125 30

Daiken Air Con pack unit RZQ140LV1 01-Apr-15 7,100 15 6.67% 91 118 475 473 473 473 475 473 473 473 475 473 473 473 475 473 350

Smoke Detectors 03-Jul-14 60 6 100% 60


Yearly Depreciation Total 30,633 1,677 2,404 2,397 2,397 2,397 2,402 2,397 2,397 2,397 2,402 1,880 1,710 1,234 1,084 1,081 497

Division 40 - Plant & Equipment (Effective Life) Depreciation Allowance

Prime Cost Method


Total

Installed

Cost $

Effective

Life

Prime

Cost

Rate %

1st Year

Days

held

Part 4: Plant & Equipment (Diminishing Value Method)

Tax Grouping

Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11 Y12 Y13 Y14 Y15 Y16 Y17

Jul-14 Jul-15 Jul-16 Jul-17 Jul-18 Jul-19 Jul-20 Jul-21 Jul-22 Jul-23 Jul-24 Jul-25 Jul-26 Jul-27 Jul-28 Jul-29 Jul-30

to to to to to to to to to to to to to to to to to

Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 Jun-21 Jun-22 Jun-23 Jun-24 Jun-25 Jun-26 Jun-27 Jun-28 Jun-29 Jun-30 Jun-31

Floor coverings - floating floor 01-Oct-14 9,116 15 13.33% 273 909 1097 948 822 712 619 535 463 402 349 301 261 226 197 170 147 To LV Pool

Floor coverings - carpet 01-Oct-14 5,625 10 20.00% 273 841 959 765 612 490 392 313 251 200 To LV Pool

Westinghouse 90cm SS rangehood 01-Oct-14 1,219 12 16.67% 273 152 178 To LV Pool

Westinghouse 90cm electric oven 01-Oct-14 3,449 12 16.67% 273 430 505 419 349 291 243 202 168 To LV Pool

Westinghouse 90cm induction cooktop 01-Oct-14 2,874 12 16.67% 273 358 420 349 291 243 202 168 To LV Pool

Delounghi SS dishwasher 01-Oct-14 1,250 10 20.00% 273 187 213 To LV Pool

Daiken Air Con pack unit RZQ140LV1 01-Apr-15 7,100 15 13.33% 91 236 918 793 687 596 516 447 388 336 291 252 219 190 164 142 To LV Pool



Yearly Depreciation Total 30,633 3,234 4,291 3,274 2,761 2,331 1,971 1,666 1,270 938 640 554 480 416 361 312 147 -

Division 40 - Plant & Equipment (Effective Life) Depreciation Allowance

Diminishing Value Method


Total

Installed

Cost $

Effective

Life

Dim Val

Rate %

1st Year

Days

held

Part 5: Low Value Pool

Tax Grouping

Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11 Y12 Y13 Y14 Y15 Y16 Y17

Jul-14 Jul-15 Jul-16 Jul-17 Jul-18 Jul-19 Jul-20 Jul-21 Jul-22 Jul-23 Jul-24 Jul-25 Jul-26 Jul-27 Jul-28 Jul-29 Jul-30

to to to to to to to to to to to to to to to to to

Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 Jun-21 Jun-22 Jun-23 Jun-24 Jun-25 Jun-26 Jun-27 Jun-28 Jun-29 Jun-30 Jun-31

Floor coverings - vinyl 01-Jul-14 860 10

Exhaust fan - heat/light 2 lamp 01-Jul-14 440 10


Sub Total Cost Low Value Pool - Low Cost 1,940 37.50% 364 591 369 231 144 90 56 35 22 14 9 5 3 2 1 1 1

Depreciation AllowanceDivision 40 - Plant & Equipment LOW VALUE POOL


Total

Installed

Cost $

Effective

Life

Dim Val

Rate %

1st Year

Days held

Tax Grouping

Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10







Sub Total Cost Low Value Pool - Low Cost 1,940 37.50% 364 591 369 231 144 90 56 35 22 14

Depreciating Assets from Diminishing ValueAllocation

Date

Undeducted

Value

Floor coverings - floating floor 01-Jul-30 958 37.50%

Floor coverings - carpet 01-Jul-23 802 37.50% 150

Westinghouse 90cm SS rangehood 01-Jul-16 889 37.50% 167 271 169 106 66 41 26 16

Westinghouse 90cm electric oven 01-Jul-22 842 37.50% 158 257

Westinghouse 90cm induction cooktop 01-Jul-21 842 37.50% 158 257 160

Delounghi SS dishwasher 01-Jul-16 850 37.50% 159 259 162 101 63 40 25 15

Daiken Air Con pack unit RZQ140LV1 01-Jul-29 925 37.50%

Sub Total Cost Low Value Pool - Low Value 6,108 0 0 326 530 331 207 129 239 465 599

Total Low Value Pool 364 591 695 761 475 297 186 274 487 613


1st Year

Days heldItem Description Start Time

Total

Installed

Cost $

Effective

Life

Dim Val

Rate %

Tax Grouping

Y11 Y12 Y13 Y14 Y15 Y16 Y17 Y18 Y19 Y20







Sub Total Cost Low Value Pool - Low Cost 1,940 37.50% 9 5 3 2 1 1 1


Date

Undeducted

Value

Floor coverings - floating floor 01-Jul-30 958 37.50% 180 292 182 114

Floor coverings - carpet 01-Jul-23 802 37.50% 244 153 95 60 37 23 15 9 6 4

Westinghouse 90cm SS rangehood 01-Jul-16 889 37.50% 10 6 4 2 2 1 1

Westinghouse 90cm electric oven 01-Jul-22 842 37.50% 160 100 63 39 24 15 10 6 4 2

Westinghouse 90cm induction cooktop 01-Jul-21 842 37.50% 100 63 39 24 15 10 6 4 2 1

Delounghi SS dishwasher 01-Jul-16 850 37.50% 10 6 4 2 1 1 1

Daiken Air Con pack unit RZQ140LV1 01-Jul-29 925 37.50% 174 282 176 110 69




1st Year


Total

Installed

Cost $

Effective

Life

Dim Val

Rate %

Tax Grouping

Y21 Y22 Y23 Y24 Y25 Y26 Y27 Y28 Y29 Y30







Sub Total Cost Low Value Pool - Low Cost 1,940 37.50%


Date

Undeducted

Value

Floor coverings - floating floor 01-Jul-30 958 37.50% 71 45 28 17 11 7 4 3 2 1

Floor coverings - carpet 01-Jul-23 802 37.50% 2 1 1 1

Westinghouse 90cm SS rangehood 01-Jul-16 889 37.50%

Westinghouse 90cm electric oven 01-Jul-22 842 37.50% 1 1 1

Westinghouse 90cm induction cooktop 01-Jul-21 842 37.50% 1 1

Delounghi SS dishwasher 01-Jul-16 850 37.50%

Daiken Air Con pack unit RZQ140LV1 01-Jul-29 925 37.50% 43 27 17 11 7 4 3 2 1 1




1st Year


Total

Installed

Cost $

Effective

Life

Dim Val

Rate %



APPENDIX C

Capital Improvement and Asset Cost Estimate Worksheets

Trade Break-up

18/01/2016 1:08:29 PMPrinted:InvestorClient's name:

Single storey, brick clad , timber framed

house with pitched metal roof including

deck and verandah

Description:Depreciation ExampleJob name:

TotalRateUnitQuantityDescription

$5,625.00$125.00m245Carpet laid - wool/nylon 80/20%

$940.00$117.50m28Vinyl - laid with adhesive - tiles

$9,116.25$178.75m251

Floating flooring - with underlay -

laminated timber incl. remove

existing and new particleboard

$25,248.75NEW DECK & STAIRS

$1,200.00$1,200.00each1Architect and Council Fees

$6,250.00$250.00m225Demolish existing deck and

dispose at tip

$7,908.75$416.25m219Hardwood Timber deck incl

metal bearers & joists and stain

$1,500.00$500.00each3Extra for metal posts

$1,350.00$562.50m2.4Staircase 2.4m rise 1.2m wide

$5,790.00$241.25m24Balustrade timber

$1,250.00$1,250.00each1Paint Balusrade

$3,330.00WOOD EFFECT TILES TO VERANDAH

$2,430.00$101.25m224Tiles

$900.00$37.50m224Waterproof existing and prep

$1,912.50REMOVE WALL TO KITCHEN

$180.00$11.25m216Remove wall frame

$232.50$7.50m231Remove wall liningg

$500.00$500.00each1Make good

$1,000.00$62.50m216Re-suppport ceiling with timber

beams and columns

$4,077.50CARPENTRY - FITOUT

$4,077.50$2,038.75no2

Mirror robes - complete - sliding

mirror doors - 2400mm high x

2400mm wide x 600mm deep -

70mm stud wall

$8,407.50JOINERY - KITCHEN

$625.00$625.00each1Strip out existing

Page 1 of 5 Produced by Matt Turner QS Services


$620.00$310.00no2

Kitchen top cabinet - 2 door -

polyurethane finish standard 1

shelf - 700mm high x 300mm

deep - 400mm wide

$581.25$581.25no1

Kitchen top cabinet - corner 2

door - polyurethane finish

standard 1 shelf - 700mm high x

300mm deep - left side 800mm

wide - right side 800mm wide

$283.75$283.75no1

Kitchen top cabinet - above

fridge 2 door - polyurethane

finish standard - 700mm high x

300mm deep - 900mm wide

$1,152.50$1,152.50no1

Kitchen pantry - full height 2

door - polyurethane finish

standard 4 shelf - 2070mm high

x 580mm deep - 700mm wide

$631.25$631.25no1

Kitchen base cabinet - 3 equal

drawer - polyurethane finish

standard - 720mm high x 560mm

deep - 550mm wide

$603.75$603.75no1

Kitchen base cabinet - angled

corner - polyurethane finish

shadowline 1 shelf - 720mm high

x 560mm deep - left side 950mm

wide - right side 950mm wide

$496.25$496.25no1

Kitchen base cabinet - 2 door -

polyurethane finish standard 1

shelf - 720mm high x 560mm

deep - 950mm wide

$1,098.75$366.25m3

Kitchen benchtop - 33mm

laminated - stippley finish

laminate quality finish - 901mm

to 1200mm wide

$1,906.25PLUMBING - FITOUT

$1,906.25$1,906.25no1

Plumbing - complete room

installation - kitchen sink -

external wall - includes water

lines sink tap trap

$258.75$86.25m3Kitchen splashbacks - tiled -

600mm high - quality

$150.00$37.50m4Kickboard

$15,661.25BATHROOM RENOVATIONS

$375.00$375.00each1Remove appliances

$825.00$137.50m26Remove linings

$712.50$118.75m26New FC sheet flooring 18mm

$437.50$437.50each1Labour to adjust below floor

plumbing



$1,230.00$1,230.00no1

Vanity units - complete -

polyester/laminated cabinet -

synthetic top - single drop in

basin - 750mm high x 750mm

wide x 450mm deep

$1,277.50$1,277.50no1

Baths - complete - acrylic white -

1500mm x 725mm x 410mm

deep frame enclosed

$1,788.75$1,788.75no1Toilet suites - complete - Coroma

Metro - close coupled -

$522.50$522.50no1Install shower taps & rose -

mixer - set

$350.00$350.00no1Install basin taps - mixer - tap set

$431.25$431.25no1Install bathtub taps - 2 taps -

spout hob set

$2,375.00SUPPLY FITTINGS

$187.50$187.50each1Quatro Adjustable shower

head

$437.50$437.50each1Basin Taps set

$437.50$437.50each1Bath taps set

$250.00$250.00each1Shower tap set

$562.50$562.50each1Mirrors

$500.00$125.00each4Supply and install small

fittings

$750.00ELECTRICAL

$750.00$125.00each6Electrical points

$507.50GLAZING

$507.50$507.50no1

Shower screens - framed -

toughened glass clear - 6mm

thick - full panel rod

$2,713.75TILING

$876.25$876.25no1

Waterproofing - wet areas -

complete - bathroom -

average - medium 6.0m2

$1,837.50$131.25m214Ceramic tiling - wall - tile size

- 600mm x 300mm

$1,365.00PLASTERING

$1,050.00$52.50m220Fibrecement lining to walls -

6mm thick - nailed to timber

$315.00$52.50m26

Plasterboard - water resistant

- 10mm thick - glued / nailed

to timber - ceiling joist

$17,611.25SHOWER RENOVATIONS

$375.00$375.00each1Remove appliances

$687.50$137.50m25Remove linings

$593.75$118.75m25New FC sheet flooring 18mm

$437.50$437.50each1Labour adjust below floor

plumbing



$1,230.00$1,230.00no1

Vanity units - complete -

polyester/laminated cabinet -

synthetic top - single drop in

basin - 750mm high x 750mm

wide x 450mm deep

$1,788.75$1,788.75no1Toilet suites - complete - Coroma

Metro - close coupled -

$2,375.00$2,375.00each1Shower rectangular

$1,580.00$1,580.00no1

Plumbing - complete room

installation - laundry - includes

tub and floorwaste

$522.50$522.50no1Install shower taps & rose -

mixer - set

$350.00$350.00no1Install basin taps - mixer - tap set

$430.00$215.00no2Install laundry tub wall taps - two

- washing machine cocks

$2,625.00SUPPLY FITTINGS

$187.50$187.50each1Quatro Adjustable shower

head

$437.50$437.50each1Basin Taps set

$437.50$437.50each1Laundry taps set

$250.00$250.00each1Shower tap set

$250.00$250.00each1Washing machine set

$562.50$562.50each1Mirrors

$500.00$125.00each4Supply and install small

fittings

$750.00ELECTRICAL

$750.00$125.00each6Electrical points

$2,451.25TILING

$876.25$876.25no1

Waterproofing - wet areas -

complete - bathroom -

average - medium 6.0m2

$1,575.00$131.25m212Ceramic tiling - wall - tile size

- 600mm x 300mm

$977.50PLASTERING

$765.00$42.50m218Fibrecement lining to walls-

6mm thick - nailed to timber

$212.50$42.50m25

Plasterboard - water resistant

- 10mm thick - glued / nailed

to timber - ceiling joist / truss

chord

$437.50$437.50each1Door handle to entry door

$3,500.00UNDER HOUSE STORAGE

$3,500.00$250.00m214Slatted hardwood timber deck

floor under house for storage

$640.00$640.00no1Exhaust fan - heat/exhaust - 4 lamp

$440.00$440.00no1Exhaust fan - heat/exhaust - 2 lamp



$8,287.50PAINTING

$8,287.50$81.25m2102

Paint house - complete - existing

work - surfaces in good

condition

$150.00$75.00each2SMOKE DETECTORS

$2,937.50LIGHTS

$1,012.50$112.50each9LIGHT FITTINGS Square glass

$750.00$150.00each5Spotlights 3 builbs

$1,050.00$175.00each6External sensor lights

$125.00$125.00each1Hall telephone pint

$3,448.75$3,448.75each1Westinghouse 90cm Oven electric

oven

$1,250.00$1,250.00each1Delounghi Dishwasher Stainless

Steel

$2,873.75$2,873.75each1Westinghouse 90cm Induction

cooktop

$1,218.75$1,218.75each1Westinghouse 90cm SS Rangehood

$4,100.00DUCTED AIR CONDITIONING

$3,350.00$3,350.00each1Ducting, vents and pipes

$750.00$750.00each1PLASTERBOARD ACCESS HATCH

$7,100.00$7,100.00each1Air Con Package Unit Daiken

RZQ140LV1

$3,500.00ELECTRICAL SWITCH AND METER BOX

$3,500.00$3,500.00each1

New electrical switch and meter

box inluding new wiring to house

completed mid 2012

$32,820.00DOUBLE GARAGE - single storey 36m2 , to be completed early 2016

$1,200.00$1,200.00each1Council and Certifiers Fees

$13,540.00$13,540.00each1Supply as CKH quote 22 Sept 15

$18,080.00$18,080.00each1Erection cost as Access Housing

quote 10 Sept 15

$164,196.25Total:

$0.00G.S.T [0%]:

$164,196.25Subtotal:




APPENDIX D

Site Photographs

matt turner qs services property depreciation

Documents