The New Hot Topic – Depreciation

We know that the topic of depreciation is a hot topic right now, especially since the legislation was brought back into the spotlight at the May Budget announcements.

In conversations we are having with clients regularly, people are weighing up the cashflow impact of new vs existing investment properties and historically depreciation has added another dimension to the tax deductions in these strategies.

Common client questions include:

  • Should I buy a block of land and build on it?
  • What about an existing property with generous land that I could build a granny flat or additional income generating property on?
  • What difference would it make to buy off the plan?
  • What can I expect with strata expenses compared to a Torrens title home?

The new depreciation rules have been talked about, but one last sneaky change has been affirmed, it relates to the period between 9 May 2017 and the tax year 16/17.

Mike from MCG Quantity Surveyors recently provided some up to the minute commentary through Australian Property Investor magazine about this very subject.

We include investment property strategies into our Pathway to Wealth™  strategy series for clients hoping to build their wealth to bring forward their retirement date, ahead of the traditional aged pension age and possibly even prior to the traditional superannuation preservation age.

If you would like to talk in more detail about an investment property strategy to see how it might fit into your retirement plan and how depreciation factors in, contact us to make an appointment with one of our experts. 0249411888.


Mike Mortlock, Managing Director

Mike is a cofounder of MCG Quantity Surveyors and is an industry leader in tax depreciation. Mike has worked as an expert depreciation consultant with a number of major firms such as McDonalds, CMC Markets, Deloitte, PwC and more. He has completed thousands of depreciation schedules for commercial and residential property and is in demand as a public speaker and property commentator having been featured in Australian Property Investor, Smart Property Investor, Property Observer, Sky Business and other print and radio publications. As a specialist in tax depreciation, Mike has a wealth of knowledge and a passion for maximising depreciation entitlements. It is this passion that results in outstanding results for MCG’s clients.

Outside of work Mike is a keen musician and an elite amateur triathlete, having represented Australia.