Tax Depreciation Changes 2017 for Residential Properties

Tax Depreciation Schedules

Tax Depreciation Schedules

The federal government changes to the depreciation of plant which were proposed in the May budget were passed by the senate on 15th November 2017.
A number of property investors have contacted Abbcon Associates as experts in preparation of Tax Depreciation Schedules, to discuss how these changes may affect them.
The good news for investors is that if residential properties purchased (exchanged contracts) prior to 7:30pm on 9th May 2017 are unaffected by the changes, as the prior legislation has been grandfathered.

By |December 15th, 2017|News, Tax Depreciation|0 Comments

Reserve Bank cuts interest rates to an all time low at 2.0%

 RBA Cuts Interest Rates



Today’s decision by the Reserve Bank to cut interest rates by 25 basis points brings rates to an all time record low of just 2.0 per cent. This is great news if your in the market for an investment property or looking to reduce your existing debt.

As Melbourne property sales are heating up, now is the time to consider getting into the market or adding to your portfolio. As part of any financial assessment you need to take account of allowable depreciation to assist your cash flow. Talk to the depreciation experts at Abbcon Associates before you buy.

Glen Stevens Governor of the RBA says “The global economy is expanding at a moderate pace, but commodity prices have declined over the past year, in some cases sharply. These trends appear largely to reflect increased supply, including from Australia. Australia’s terms of trade are falling nonetheless.”

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By |May 5th, 2015|News|0 Comments

Home Interest Stability

Reserve Bank flags period of interest rate stability at 2.5 per cent

The Reserve Bank has left interest rates on hold, and says that is where they are likely to stay for some time.

The official cash rate target has now been steady at 2.5 per cent for the past six months, after the RBA last cut its benchmark rate by 25 basis points in August.

Today’s decision marks the longest period of interest rate stability since the RBA left rates on hold at 4.75 per cent for almost a year between raising them to that level in November 2010 and cutting them back to 4.5 per cent in November 2011.

The bank’s decision surprised no one, with all 32 financial institution economists surveyed by Bloomberg ahead of the meeting forecasting rates to remain steady at 2.5 per cent.

Economists that are forecasting a further rate cut expect the move later in the year, as unemployment rises.

However, the statement by Reserve Bank governor Glenn Stevens has cast further doubts on the likelihood of another rate cut, and certainly implies that the next move is likely to be many more months away, whether it is up or down.


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By |February 2nd, 2014|News|0 Comments

RBA Lowers Rates

RBA Cuts Interest Rates to Record Low 2.75%Cheers borrowers with rate cut

The Reserve Bank has slashed interest rates by 25 basis points to a historic low of 2.75 per cent, the first reduction this year.

The decision followed a spate of soft economic data that increased calls by industry groups and other observers for a lower cash rate.

At its meeting today, the Board decided to lower the cash rate by 25 basis points to 2.75 per cent, effective8 May 2013.

"The global economy is likely to record growth a little below trend this year, before picking up next year. Among the major regions, the United States continues on a path of moderate expansion and China’s growth is running at a more sustainable, but still robust, pace. Japan has announced significant new policy initiatives aimed at strengthening demand and ending deflation. The euro area remains in recession. Commodity prices have moderated a little in recent months though they remain high by historical standards.

Financial conditions internationally continue to be very accommodative, with risk spreads reduced, funding conditions for most financial institutions improved and borrowing costs for well-rated corporates and sovereigns exceptionally low"

Erik Abbenhuys of Abbcon Associates says "This is great news for the property market in particular for first home buyers and property investors.

With residential property prices now at the lowest we are likely to see, there has never been a better thine to get into the market.

The added deductions you can obtain using our Depreciation Schedules, makes property more attractive than ever"

Read Fiull RBA article

By |May 7th, 2013|News|0 Comments

RBA Rate Cut

RBA Cheers borrowers with rate cut

The Reserve Bank has cut official interest rates to their lowest in three years in response to a worsening outlook for the global economy and signs of a weakening local labour market.

The RBA cut the cash rate by 0.25 percentage points to 3.25 per cent in a move that will be welcomed by borrowers.

“The door remains open for further cuts.”

A 25 basis point cut, if passed along in full by lenders, would reduce the average monthly repayment on a $300,000, 25-year mortgage by about $48.

Treasurer Wayne Swan welcomed the RBA’s decision, saying “Australians deserve cost of living relief and today that’s what they got”.

The Bank of Queensland was the first bank to react, cutting its standard variable rate by 20 basis points to 6.71 per cent immediately after the RBA’s announcement.

“Given the continuing pressure on the cost of funding a 20 basis points reduction is the best balance between our customers and shareholders,” chief executive Stuart Grimshaw said.

The dollar fell to the day’s low of $US1.0304, from $US1.0368 immediately before the decision.

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By |October 10th, 2012|News|0 Comments

Property Values Rise

Property Values Continue to Rise

According to figures from RP Data-Rismark, housing prices in Australia’s capital cities Property continue to rise.
Property prices in Sydney rose 0.1 per cent last month, the fifth such monthly increase this year, taking the increase over the quarter to 2.4 per cent.
In other capital cities quarterly increases were higher with a 5.2 per cent increase in Darwin, 2.8 per cent increase in Canberra and 2.5 per cent increase in Melbourne.

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By |September 9th, 2012|News|0 Comments

Negative Gearing to Stay

Tuesday 26th June 2012

The Prime Minister Julia Gillard announced on Tuesday that Negative Gearing for property investors will not be removed.

The Government ruled out removing the tax break and the federal opposition is of like mind on this issue.

A property is negatively geared when the costs of owning it – interest on the loan, bank charges, maintenance, repairs and capital depreciation – exceed the rental income it produces. This highlights the benefit of having a quantity surveyor survey your rental property and prepare a Tax Depreciation Schedule for you.

The benefit of claiming this depreciation can add significantly to your allowable deductions on against the cost of having an investment property.

To find out more about how Abbcon can maximize your Property Tax Depreciation call (03) 9873-7144 or consult our website:

By |July 20th, 2012|News|0 Comments