What you need to know before the October 31 Tax Return Self Lodgement deadline
Expat Tax Specialist Bradley Beer, Chief Executive Officer with BMT Tax Depreciation, has shared his insights on “What you need to know before the October 31 Tax return deadline.”
This blog offers valuable insights and tips for expatriates as they prepare for the approaching deadline for their tax returns. With just a few weeks to go, here’s everything you need to know about the October 31 deadline and your tax entitlements.
What is the October 31 deadline?
The October 31 deadline applies only to self-lodge tax returns. The financial year ends on June 30, so you have roughly four months to complete and lodge your tax return.
If you’re using a tax agent, you must lodge your tax return until 15 May 2025.
What happens if investors miss the deadline?
If you expect to receive a tax refund, you won’t be penalised for lodging your tax return late. Even after October 31, you can still self-lodge your tax return via the MyTax website. However, if you owe the tax office money and miss the deadline, you’ll be fined $280 for every 28 days that your tax return is overdue. Even if the deadline has passed, it’s essential to lodge as soon as possible. The easiest option to avoid potential penalties is by going through an accountant.
Depreciation deductions and self-lodge tax returns
Depreciation is one of the most lucrative tax deductions because it’s a non-cash deduction, meaning investors don’t have to spend money to be eligible to claim it. The Australian Taxation Office (ATO) allows owners of any income-producing property to claim depreciation for the building’s structure via capital works deductions and the plant and equipment assets contained within the property. These deductions reduce taxable income for property investors and minimise tax liabilities.
Although rare, some property investors choose not to seek expert advice and self-assess deductions, putting themselves at risk of using the wrong depreciation rates and classifying items incorrectly. As a result, investors could be missing out on thousands of dollars worth of deductions.
In residential properties, capital works deductions are claimed at a rate of 2.5 per cent per year for a maximum of forty years, while eligible plant and equipment assets must be depreciated over time using a practical life unique to each asset supplied by the ATO.
Quantity surveyors are recognised under Tax Ruling 97/25 as one of the few professionals with the expert knowledge necessary for estimating construction costs to calculate property depreciation. A quantity surveyor can assess a property and provide a comprehensive depreciation schedule that outlines depreciation deductions accurately. A tax depreciation schedule can also be used as evidence should the ATO complete an audit of an investor’s claims.
Will a tax depreciation schedule increase an investor’s tax refund?
A tax depreciation schedule is the best way to ensure you get the most significant tax refund possible. There is no item too small to consider including in a schedule. Low-cost assets and low-value assets all add up to maximise depreciation benefits. If an asset has sufficiently low value, legislation allows it to be written off much faster or even claimed in full immediately.
A BMT Tax Depreciation Schedule covers all deductions available over the lifetime of a property (forty years) to ensure you maximise your cash flow. In FY 2023-24, BMT found an average of over $11,000 in first-year tax deductions for residential clients.
To learn more, contact BMT Tax Depreciation directly to Request a Quote or talk to our expert team on 1300 728 726 today. You can read Bradley Beers Bio here.
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