Tax Depreciation and Covid-19 Reports – Will Physical Inspections Be Required?

by | Jul 6, 2020

Businesses and property investors will sometimes hire a professional quantity surveyor, who will put together an updated tax depreciation report. This will provide depreciation and capital works deductions for revenue-producing properties they own. These places may take the form of a factory, rental property, or office building.

Comprehensive property inspection by a professional quantity surveyor will be essential for this process. It will:

  • identify possible deductions that are available as per tax law;
  • offer precise valuations of building and plant works that qualify; and
  • offer supporting documents of taxpayers’ claims pertaining to capital works and depreciation deductions. This will be required for ATO audits.

It has come to our attention that a number of quantity surveyors have been promoting reports about tax depreciation, ones that don’t include physical property inspections because of coronavirus precautions.

For the most part, reports are offered, and they state an intent to conduct an inspection later on.

With that said, in several instances, no site inspection offers are made.

When a physical premises inspection isn’t conducted, the likelihood of missed or mistaken deductions increases. This could lead to expensive adjustments if taxpayers need to modify a tax return.

Note to the editor: if you need further information about the usage of reports about tax depreciation from quantity surveyors, kindly get in touch with our office.

Please be mindful of the following: most of this publication’s comments are quite general. Those who intend to apply this information to more practical situations are encouraged to seek professional guidance independently. They should have their interpretations verified before applying the information in this article to their own circumstances.

General Advice Warning

The material on this page and on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained on this page and on this website is General Advice and does not take into account any person’s particular investment objectives, financial situation and particular needs.

Before making an investment decision based on this advice you should consider, with or without the assistance of a securities adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. In addition, the examples provided on this page and on this website are for illustrative purposes only.

Although every effort has been made to verify the accuracy of the information contained on this page and on our website, Chan & Naylor, its officers, representatives, employees and agents disclaim all liability [except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this website or any loss or damage suffered by any person directly or indirectly through relying on this information.


Chan & Naylor
Chan & Naylor

Chan & Naylor is Australia’s leading property, business, tax-accounting & wealth advisory group with offices nationwide.

The Chan & Naylor Group has national offices in South West Sydney, Sydney CBD, Pymble and Parramatta in New South Wales, Wheelers Hill, Melbourne and Moonee Ponds in Victoria, Brisbane in Queensland, and East Perth in Western Australia that can assist you with your accounting needs. Contact us here today.

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