TDQS Tax Depreciation Experts: Maximise Returns on Your Childcare Centre Investment
Investing in a childcare centre offers dual advantages: strong market demand and the opportunity to maximise returns with significant tax depreciation benefits. As an industry bolstered by government subsidies and the increasing need for dual-income households, childcare centres provide steady revenue streams. With professional depreciation schedules tailored to your property, you can enhance cash flow and boost your returns on investment (ROI).
Childcare centres are designed to meet unique operational and structural requirements, incorporating specialised fit-outs and high-value fixtures. These features represent excellent opportunities for property investors to claim tax depreciation. By working with TDQS experts to prepare a comprehensive depreciation schedule, you can legally reduce your taxable income while significantly improving cash flow.
Key Fit-Out Components Eligible for Tax Depreciation
Childcare centres require compliance with safety, functionality, and aesthetic standards. These specialised features translate to significant depreciation potential, including:
- Safety Installations
- Fire safety systems, emergency lighting, and alarms.
- Childproof gates, locks, and barriers.
- Play and Learning Equipment
- Indoor play structures and sensory tools.
- Outdoor features such as sandpits, slides, and shade sails.
- Kitchen and Bathroom Fit-Outs
- Commercial-grade kitchen appliances.
- Child-sized bathroom fixtures and basins.
- Furniture and Fixtures
- Classroom desks, shelving, and storage units.
- Reception desks and parent waiting areas.
- HVAC and Lighting Systems
- Air conditioning for optimal temperature regulation.
- Specialised lighting for child-friendly environments.
TDQS experts ensure every eligible asset in your childcare centre is included in your depreciation schedule, maximising your claim potential.
How TDQS Tax Depreciation Experts Can Help
At TDQS, we specialise in preparing detailed depreciation schedules tailored to childcare centres. Our team ensures that all high-value components, from safety installations to furniture and fixtures, are accurately assessed for tax depreciation. By identifying both capital works deductions and plant and equipment depreciation, we help property investors achieve optimal financial outcomes.
Case Study: Unlocking Depreciation Benefits for a $6.8M Childcare Centre
Overview
A savvy investor recently purchased a childcare centre for $6.8 million, recognising the strong market demand and potential tax advantages. By partnering with TDQS to create a comprehensive depreciation schedule, they unlocked significant depreciation benefits across both Division 40 (Plant and Equipment) and Division 43 (Capital Works).
Key Details of the Property
- Purchase Price: $6.8 million
- Property Type: Modern childcare centre with high-value fit-outs
- Key Features:
- Advanced safety installations (childproof systems, alarms, fire safety features)
- Purpose-built play equipment (both indoor and outdoor)
- Commercial-grade kitchen and child-friendly bathroom fixtures
- Custom HVAC and lighting systems tailored for childcare needs
Depreciation Breakdown
Division 40 – Plant and Equipment:
Division 40 covers the depreciation of removable assets like furniture, appliances, and equipment.
- Depreciable Assets Identified: Play structures, sensory equipment, reception furniture, air conditioning systems, kitchen appliances.
- Total Claimable Depreciation: $1.5 million
Division 43 – Capital Works:
Division 43 includes structural and fixed assets like walls, floors, and built-in fixtures.
- Depreciable Assets Identified: Building construction costs, fit-outs, and permanent fixtures.
- Total Claimable Depreciation: $1.8 million
Outcome for the Investor
By utilising TDQS’s expertly prepared depreciation schedule, the client was able to achieve:
- Significant Annual Tax Savings:
- First-year claims across Division 40 and Division 43 provided a substantial reduction in taxable income, enhancing the client’s cash flow.
- Optimised ROI:
- The combined depreciation of $3.3 million represented nearly 50% of the purchase price, ensuring the client maximised their investment’s financial returns.
- Compliance and Clarity:
- With a professionally prepared depreciation schedule, the investor experienced hassle-free tax reporting while staying fully compliant with ATO regulations.
Key Takeaways
- A professionally prepared depreciation schedule unlocks substantial financial benefits for childcare centre investors.
- Identifying both Division 40 and Division 43 assets ensures comprehensive coverage of all claimable items.
- TDQS’s expertise enables investors to reduce taxable income while boosting cash flow and ROI.
Are you maximising your childcare centre’s tax depreciation potential?
Contact TDQS Today for a free consultation and unlock the hidden value of your investment.
