Frequently we are asked the question, why should I get a Quantity Surveyor to assist me with assessing depreciation on my rental property when it seems like a matter that an accountant can figure out?
A quantity surveyor is a tertiary qualified professional that is degree qualified in the Science of Construction. This person as part of their education has completed sufficient credits to specialise in Quantity Surveying. It is this formal training that helps transform this person into what can be considered as a Building Economist.
Quantity Surveyors are considered economists in the construction industry.
The ATO deems Quantity Surveyors suitably qualified persons to estimate the cost of construction for depreciation claims. Once registered, they can estimate the cost of construction for depreciation purposes. The construction cost is indexed in accordance with the Australian Institute of Quantity Surveyors. Different rates are applied depending on the type, quality of finish and year it is built.
Why then, can’t an accountant can’t assist me?
As accountants are unable to determine the cost of construction, it is then left up to the quantity surveyor to provide these estimates of cost. Quantity Surveyors are considered economists of the building sector. Naturally then, they are in the best position and are trusted to provide reports. These reports are accepted by Quantity Surveyors whom are Registered Tax Agents with the Tax Practitioner’s Board. As an example, a square metre of concrete slab may cost $100 in today’s market. A quantity surveyor would derive this square metre rate based on an understanding of costs that includes excavation of the area, provision of sand underlay, termite protection, concretor to finish the concrete. The difference is in the detail that Duo Tax Quantity Surveyors go through to get it tack sharp. Our knowledge is extended across the country using the most up to date sources to reflect the variances in rates for the cost of supply and even labour.
Registered Tax Agents. Are they all the same?
Accountants are Registered Tax Agents and have the duty of providing general tax advice. Quantity Surveyors who are also Registered Tax Agents, will have conditions to their registration. There is limited to giving advice on the cost of construction and assets, and the depreciable value associated.
What else can a Quantity Surveyor help me depreciate?
Assets such as microwaves, air-conditioners and the like are also depreciable by a Quantity Surveyor (Division 40). What’s tricky is determining the underlying value of an old asset that most likely wouldn’t have a receipt. Or in other cases, a building contract that doesn’t determine the cost of the new asset. That’s where a Quantity Surveyor is will be qualified to estimate the value of the asset based on professional judgement.
Why Duo Tax?
It is this expert and detailed knowledge of building costs that allows Duo Tax Quantity Surveyors to work in conjunction with your accountant to achieve the best possible outcome and not only look at how much you can claim, but how soon you can claim it. After all, cash-flow is vital in the earliest stages in any rental property. Do you have an investment property that you would like one of our expert quantity surveyors to view and assess? Call us today on 1300 DUO TAX and we guarantee our service will bring value or else our time and effort is free-of-charge.