A Quantity Surveyor advises on all aspects of construction costs, from estimating and tendering to contract administration and project management. They work with clients, architects, engineers, planners and other professionals to complete construction projects on time, within the budget and to the required quality standards.
While Quantity Surveyors are essential to get construction projects done, that’s not all they do. For example, a Quantity Surveyor is valuable for your investment property tax deductions.
Quantity Surveyors play a key role in maximising property depreciation and managing construction costs. Whether you’re planning a building project or looking to optimise your investment property returns, this guide walks you through how these professionals can work to your advantage.
What is A Quantity Surveyor?
A quantity surveyor is a qualified construction professional who estimates construction costs across residential, commercial and industrial sectors. Their expertise goes beyond basic cost estimating to include tax, depreciation, council approvals and bank lending for construction finance.
Becoming a Quantity Surveyor in Australia
To become a quantity surveyor in Australia, an individual must complete an accredited tertiary qualification. The most common pathway is through a bachelor’s degree in construction management, construction economics, or a related field at an AIQS-accredited university.
The qualification process:
- Complete an accredited undergraduate degree
- Gain 2 years of supervised practical experience (logbook experience)
- Pass a professional competence interview
- Become an Associate or Member of the Australian Institute of Quantity Surveyors (AIQS)
Licensing varies by state. For example, in Victoria, you need to register with the Victorian Building Authority; in Queensland, you need to be licensed by the Queensland Building and Construction Commission.
Quantity surveyors must maintain ongoing professional development and stay current with industry regulations and practices. Many also obtain specialised certifications in sustainable construction or Building Information Modelling (BIM).
What Does a Quantity Surveyor Do?
Quantity surveyors provide services across multiple sectors. Here’s a breakdown of their primary roles:
| Service Area | Primary Responsibilities | Industry Application |
| Construction Management | Cost planning, budget control, variation assessment | Residential and commercial projects |
| Cost Estimation | Detailed cost plans, tender documentation, feasibility studies | Infrastructure and civil works |
| Tax Depreciation | Property assessment, depreciation schedules, ATO compliance | Investment properties |
| Contract Administration | Contract advice, payment certification, dispute resolution | All construction sectors |
Quantity surveyors work on various types of projects, such as:
- Aged care facilities
- Commercial office buildings
- Educational institutions
- Healthcare facilities
- Hospitality venues
- Industrial complexes
- Residential developments
- Infrastructure projects
Construction Management and Estimation
As financial advisors in the construction industry, quantity surveyors leverage modern tools and technology to ensure effective cost management.
They utilise Building Information Modelling (BIM) for comprehensive digital project representation, implement cloud-based collaboration platforms for real-time data access, employ Artificial Intelligence for automated quantity take-offs, and incorporate drone technology for detailed site surveys and assessments.
In their role of calculating material quantities and costs for construction projects, quantity surveyors produce comprehensive reports that encompass material quantity assessments, detailed contractor cost evaluations, labour cost estimates, and thorough risk assessments. This systematic approach ensures accurate project costing from start to finish.
When working with bank lenders, a certified Quantity Surveyor provides initial cost reports that include detailed project cost breakdowns, comprehensive risk assessments, development timelines, and financial feasibility studies.
The involvement of a dedicated cost estimation team ensures accurate cost estimation, robust risk management strategies, enhanced project success probability, and effective ongoing cost control throughout the project lifecycle.
Working with Stakeholders
Quantity surveyors serve as crucial intermediaries between various project participants, including architects and designers, engineers and technical consultants, contractors and subcontractors, project managers, property developers, and financial institutions.
Their role in facilitating communication between these diverse stakeholders is vital for project success.
Through their coordination efforts, quantity surveyors ensure clear project objectives are maintained, budgets remain aligned with expectations, cost control measures are effectively implemented, disputes are resolved in a timely manner, and project delivery meets established timelines and quality standards.
This comprehensive stakeholder management approach helps create a cohesive project environment where all parties work together effectively toward common goals.
Tax Depreciation and Property Services
Quantity surveyors are ATO-approved to prepare tax depreciation schedules. They are specialists for property investors looking to get the most out of their investments. AIQS voting members must prepare tax depreciation schedules under their supervision.
Understanding Property Tax Depreciation
Depreciation refers to assets’ natural wear and tear as they age over time. This is especially important for property investors as it can mean big tax deductions. Here’s how it works:
Consider this example:
Joel bought a brand-new washing machine in March 2019 for $1,500. From the moment he started using it, it lost value. Each year of ownership sees further value depreciation, so if he sells it 5 years later, its value will be significantly less than the purchase price.
This applies to both the building and its contents. Property investors are allowed by the ATO to claim this as a tax deduction, which is a powerful tool for tax minimisation. However, depreciation claims must comply with Division 40 and Division 43 of the ITAA 1997.
Components of Property Depreciation
The two main categories of property depreciation are:
- Plant and Equipment (Division 40):
- Detachable items
- Short life assets
- Examples: air conditioning units, electric garage doors, ovens
- Capital Works (Division 43):
- Building structure components
- Fixed elements
- Examples: built-in wardrobes, retaining walls, fences, basins, sinks
Role of Quantity Surveyors in Tax Depreciation
The ATO requires professional assessment for depreciation claims. Your accountant can’t estimate construction costs and materials – this is where quantity surveyors come in. They:
- Conduct property assessments
- Identify and classify depreciable assets
- Determine asset values
- Calculate depreciation rates
- Prepare documentation
What Are Tax Depreciation Schedules?
Tax depreciation schedules are detailed reports that outline the deductible depreciation for your investment property each year. When preparing these schedules, quantity surveyors conduct comprehensive assessments that examine the property’s age and construction materials, identify and value all fixtures and fittings, apply appropriate depreciation rates, and compile thorough documentation for tax purposes.
The depth of analysis is particularly evident in structural elements like concrete work. A quantity surveyor’s assessment encompasses multiple critical components, including detailed evaluation of excavation requirements, provision of sand underlay, implementation of termite protection and builder’s film, formwork support systems, and concrete finishing work.
This meticulous attention to detail ensures property investors can maximise their tax benefits while maintaining full compliance with ATO regulations.
Environmental Considerations in Quantity Surveying
Modern quantity surveying has evolved significantly to incorporate sustainability and environmental considerations, reflecting the construction industry’s shift towards more sustainable practices.
In terms of sustainable cost management, quantity surveyors now conduct extensive life cycle cost analyses for green materials, evaluate energy-efficient systems, assess renewable energy installations, and perform detailed cost-benefit analyses of green building initiatives.
Environmental compliance has become equally important in the field. Quantity surveyors work to ensure projects meet Green Star rating requirements and NABERS energy efficiency standards while maintaining compliance with sustainable building codes.
They also play a crucial role in conducting environmental impact assessments, helping projects balance economic viability with environmental responsibility.
This comprehensive approach helps create buildings that are not only cost-effective but also environmentally sustainable for the future. that your construction project is completed on time, within budget, and to the required quality standards.
Why Choose Duo Tax?
At Duo Tax, we help property investors maximise tax savings with accurate, compliant depreciation schedules. Our expert team delivers fast results, tailored advice, and a detailed approach to ensure you get the best outcomes for your investment.
Key Takeaways
- Quantity Surveyors play a crucial role in maximising tax deductions for property investors by preparing detailed depreciation schedules that ensure full compliance with ATO guidelines
- Many investors underestimate the strategic value that Quantity Surveyors bring to their investment portfolio, both in terms of construction cost management and optimisation of tax benefits
- Their expertise can significantly improve investment returns and help achieve long-term financial goals through proper depreciation claiming and cost management strategies
Ready for your quantity survey report? Contact us today to find out how much you can save.
Speak to our expert quantity surveying team today!
Our friendly quantity surveying team can help you organise your personalised depreciation schedule.
Tuan is an award winning Quantity Surveyor and leads Duo Tax Quantity Surveyors – Australia’s fastest growing provider of Tax Depreciation.
