Why use a Quantity Surveyor?

Written on the 10 April 2018

The ATO Tax Ruling 97/25 states that if your investment property was built after 1985 and you are unaware of the costs of construction of the dwelling then you must hire a qualified quantity surveyor to compile a depreciation schedule. Your accountant can't do this for you.

In order to claim depreciation in your financial Tax Return, you'll need a tax depreciation schedule. Unlike other professionals, quantity surveyors are the experts in construction economics and should be fully accredited by the Australian Institute of Quantity Surveyors (AIQS). They have the proper education and experience to accurately measure your property's construction costs and help you maximise your deductions. While your accountant can give you advice on tax depreciation, only quantity surveyors can provide the actual figures upon which to base your tax return. Unlike other professionals, quantity surveyors are experts in construction economics.

In addition to being accredited by the Australian Institute of Quantity Surveyors (AIQS), a quantity surveyor must also carry registration as a tax agent in order to supply you with a depreciation schedule for proper use. This ruling came into effect on March 1, 2010 and ensures that your report is prepared by a qualified tax professional and will meet current ATO requirements and also meet the standard of an ATO audit. A quantity surveyor must always be a registered tax agent and be able to supply you with confirmation of this.

When you're ready to have your depreciation schedule prepared for Tax purposes you will need to set up a site inspection with a quantity surveyor. Your quantity Surveyor will:

Come out to site and perform a thorough inspection on the property;
  • Take measurements, photos, and precise detailed notes on all depreciable items in the property;
  • Work out ,in detail, the construction costs of the building,
  • Correctly determine the value of all plant and equipment items (fixtures & fittings), such as appliances, floors and blinds.

After the quantity surveyor has gathered all the necessary data, a detailed report will be completed and supplied to you. This report will show:

  • the breakdown of the building allowance costs
  • all plant and equipment item costs
  • the rates at which you can depreciate them, and for how long

Our quantity surveyor will take the time to meet with you to ensure that you understand and are happy with the information supplied to you.

Once the depreciation schedule is completed, simply give it to your accountant to use your tax returns and start saving money.

At SJB Quantity Surveyors we would advise you that, as an investor, you want the most accurate, concise and up-to-date information supplied to you to create an accurate depreciation report both from the perspective of satisfying the ATO as well as maximising your deductions.

Since most reputable companies offer a money-back guarantee for their services, it pays to get the right advice from a qualified and experienced quantity surveyor.  Call our staff now and start maximising your returns today.

SJB Quantity Surveyors have offices in Brisbane, the Gold Coast, Sydney, Melbourne, Adelaide & Darwin.

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PO Box 1065
NSW 2487

Office Hours: Monday - Friday
9.00pm - 4.00pm