Invest
New property tax tool gaining traction
With cash flow vital early in the ownership of a property, split depreciation reports have grown in popularity, enabling easier tax write-offs.
New property tax tool gaining traction
With cash flow vital early in the ownership of a property, split depreciation reports have grown in popularity, enabling easier tax write-offs.
While tax depreciation schedules have been a staple of a property investing for years, split reporting between co-owners has been enjoying new-found fame, according to quantity surveyors BMT.
“Split reporting generates more deductions because rather than just come up with a depreciation figure and splitting it in two, it actually splits the value of the asset first and then apply the tax rules,” BMT chief executive Bradley Beer told Nest Egg.
“It means lower value items get to be claimed quicker, which means more cash flow early for the investor in their property which is when it is most vital,” he added.
Where one owner is currently able to claim immediately on assets valued at $300 or below, split owners can do so for assets of up to $600, before writing off their stake in the asset.
The same rule applies to low-value pooling, enabling co-owners with a 50-50 split to include assets of less than $2,000 (instead of $1,000 for single owners) to their pool. Low-pool assets can then be claimed at an 18.75 per cent rate in the first year and 37.5 per cent afterwards.
The result is that split reporting is becoming less obscure due to growing investor awareness, although some inertia still exists.
“The number of split reports is increasing, but sometimes it is the accountant that doesn’t understand it or doesn’t necessarily want to do it, but their job is to help you get the maximum deduction [out of] the things you’re doing and help you do your tax and claim everything correctly,” Mr Beer said.
“They should work with you on it because it means slightly better deductions for people in the early years when it’s hardest because of costs and low rents.”
Given the burgeoning Australian property market, co-ownership could be an attractive option to get a foot on the property investment ladder, Mr Beer said.
“For people who don’t have the equity, doing it together with the right partner means you still have the ability to make money.”
RELATED ARTICLES
Property
Twice the demand: the case study behind Melbourne’s first‑home buyer surge
Melbourne has quietly engineered one of Australia’s most consequential housing turnarounds, with first‑home buyer demand running at roughly double the national pace and four of the top five buyer ...Read more
Property
First‑home buyers now anchor Australia’s mortgage growth — but the risk maths is changing
Great Southern Bank’s revelation that nearly one in three of its new mortgages went to first‑home buyers is not an outlier. It is the leading edge of a broader market realignment powered by government ...Read more
Property
Home guarantee scheme shake-up challenges Australia’s housing market players
From 1 October 2025, the expanded Home Guarantee Scheme (HGS) materially widens what first-home buyers can purchase and where. By sharply lifting price caps and relaxing eligibility settings, the ...Read more
Property
GSB’s first‑home buyer play: turning policy tailwinds into market share
Great Southern Bank’s latest results show that nearly one in three of its new mortgages now go to first‑home buyers—evidence of a fast‑moving market reshaped by government guarantees, easing rates and ...Read more
Property
Why investors are fleeing and renters are scrambling in Australia's housing maze
Australia’s rental market is tightening even as individual landlords sell down. New data points to a multi‑year investor retreat tied to higher holding costs and regulatory uncertainty, while prices ...Read more
Property
Australia's 5% deposit guarantee: Unlocking gains while balancing risks in the market share race
Can a bigger government guarantee fix housing access without fuelling prices? Australia is about to find out. The Albanese government’s expanded 5% deposit pathway aims to help 70,000 buyers, remove ...Read more
Property
Australia's bold move the 5% deposit scheme shaking up the housing market
Can a government guarantee replace lenders mortgage insurance without inflating prices or risk? Canberra’s accelerated 5% deposit scheme is a bold demand-side nudge in a supply‑constrained marketRead more
Property
When rates drop but stress sticks: exploring Australia's mortgage arrears dilemma
Headline numbers suggest arrears ease as rates come down. The reality in Australia is messier: broad measures dipped into mid‑2025, yet severe delinquencies and non‑bank portfolios remain under ...Read more
Property
Twice the demand: the case study behind Melbourne’s first‑home buyer surge
Melbourne has quietly engineered one of Australia’s most consequential housing turnarounds, with first‑home buyer demand running at roughly double the national pace and four of the top five buyer ...Read more
Property
First‑home buyers now anchor Australia’s mortgage growth — but the risk maths is changing
Great Southern Bank’s revelation that nearly one in three of its new mortgages went to first‑home buyers is not an outlier. It is the leading edge of a broader market realignment powered by government ...Read more
Property
Home guarantee scheme shake-up challenges Australia’s housing market players
From 1 October 2025, the expanded Home Guarantee Scheme (HGS) materially widens what first-home buyers can purchase and where. By sharply lifting price caps and relaxing eligibility settings, the ...Read more
Property
GSB’s first‑home buyer play: turning policy tailwinds into market share
Great Southern Bank’s latest results show that nearly one in three of its new mortgages now go to first‑home buyers—evidence of a fast‑moving market reshaped by government guarantees, easing rates and ...Read more
Property
Why investors are fleeing and renters are scrambling in Australia's housing maze
Australia’s rental market is tightening even as individual landlords sell down. New data points to a multi‑year investor retreat tied to higher holding costs and regulatory uncertainty, while prices ...Read more
Property
Australia's 5% deposit guarantee: Unlocking gains while balancing risks in the market share race
Can a bigger government guarantee fix housing access without fuelling prices? Australia is about to find out. The Albanese government’s expanded 5% deposit pathway aims to help 70,000 buyers, remove ...Read more
Property
Australia's bold move the 5% deposit scheme shaking up the housing market
Can a government guarantee replace lenders mortgage insurance without inflating prices or risk? Canberra’s accelerated 5% deposit scheme is a bold demand-side nudge in a supply‑constrained marketRead more
Property
When rates drop but stress sticks: exploring Australia's mortgage arrears dilemma
Headline numbers suggest arrears ease as rates come down. The reality in Australia is messier: broad measures dipped into mid‑2025, yet severe delinquencies and non‑bank portfolios remain under ...Read more
