CASE STUDY 2– DON’T DELAY, ORDER NOW
Delaying your decision to obtain a depreciation report can cost you tens of thousands of dollars worth of depreciation entitlements. We have set out below a case study of depreciation entitlements claimable by a first time investor examining what a delay of 4 years could do to an investor’s cash flow. In December 2016, Paul and Samantha are told of the cost benefits of engaging Deppro to produce a depreciation report. As is evident from the table below, Paul and Samantha’s delay means they missed out on almost $60,000 worth of depreciation deductions from previous financial years.
| Financial Year | Depreciation on Plant | Capital Allowances | Yearly Total | |
| Low Value Pooling | ||||
| 23/3/2012 – 2012 | 2,674 | 801 | 2,446 | 5,921 |
| 2012 – 2013 | 4,101 | 1302 | 8,952 | 14,355 |
| 2013 – 2014 | 3,454 | 814 | 8,952 | 13,220 |
| 2014 – 2015 | 2,923 | 508 | 8,952 | 12,384 |
| 2015 – 2016 | 2,487 | 847 | 8,952 | 12,286 |
| 2016 – 2017 | 2,127 | 0 | 8,952 | 11,079 |
| 2017 – 2018 | 1,828 | 0 | 8,952 | 10,780 |
| 2018 – 2019 | 1,581 | 0 | 8,952 | 10,533 |
| 2019 – 2020 | 1,374 | 0 | 8,952 | 10,326 |
| 2020 – 2021 | 1,201 | 0 | 8,952 | 10,153 |
Obtaining a depreciation report at or around the time of settlement of a property can put thousands of dollars back into an investors pocket. This money can be used to either pay down existing debts on investments or drive the investor to re-invest and grow their portfolio.