Unlock the Full Depreciation Potential of Your Aged Care Centre
Aged care centres are essential facilities that require specialised assets to cater to residents’ unique needs. However, many aged care centre owners overlook significant tax depreciation opportunities hidden within these assets. With TDQS, you can uncover these benefits, reduce taxable income, and maximise cash flow through a professionally prepared depreciation schedule.
Aged care centres often feature specialised assets that qualify for tax depreciation under Division 40 (Plant and Equipment) and Division 43 (Capital Works). These assets are unique to the sector and often overlooked without a detailed asset register and expert assessment.
Key Depreciable Assets in Aged Care Centres
- Safety and Accessibility Installations
- Handrails, ramps, and elevators designed for mobility assistance.
- Emergency call systems and nurse call stations.
- Healthcare and Resident Support Equipment
- Medical beds, hoists, and support chairs.
- Specialised furniture like adjustable dining tables and resident lockers.
- Facility Fit-Outs
- Resident bathrooms with grab bars, non-slip flooring, and adapted fixtures.
- Kitchens equipped with commercial-grade appliances for catering.
- Common Area Amenities
- Communal lounges with entertainment systems.
- Gardens, pathways, and shaded outdoor seating areas designed for elderly relaxation.
- Environmental Systems
- Advanced HVAC systems to regulate temperature and air quality.
- Specialised lighting systems to reduce glare and improve visibility for residents.
What You Can Claim as an Aged Care Centre Owner
- Division 40 (Plant and Equipment):
- Movable assets like furniture, medical equipment, and fixtures.
- Division 43 (Capital Works):
- Structural elements such as walls, floors, roofing, and permanent fixtures.
- Write-Off Allowances for Replacements:
- Immediate deductions for disposed assets during renovations or upgrades.
By preparing a comprehensive depreciation schedule, you can identify and claim deductions on every eligible asset, ensuring no opportunity is missed.
Why TDQS is the Expert in Aged Care Depreciation
- Industry Expertise:
TDQS specialises in aged care centres, understanding the unique operational and structural requirements of these facilities. - Tailored Depreciation Schedules:
We identify every depreciable asset, from specialised medical equipment to structural improvements, to create a schedule that maximises deductions. - Future-Ready Asset Registers:
By preparing a detailed asset register, we ensure you can track asset disposals and additions, maximising write-off allowances for any future upgrades or renovations.
Compliance Assurance:
Our schedules adhere to all tax regulations, minimising audit risks while ensuring you claim your full entitlements.
Case Study: Maximising Depreciation Benefits for an Aged Care Centre Investor
Overview
A client approached TDQS after purchasing an aged care centre for $25 million, seeking to optimise their tax depreciation benefits. The facility featured state-of-the-art accommodations, communal spaces, and specialised healthcare equipment, yet the client was unaware of the full scope of tax deductions available. Through our expertise, we identified significant depreciation opportunities, provided a detailed asset register, and unlocked substantial cash flow improvements.
Challenges
- Overlooked Depreciable Assets:
The client had a general understanding of depreciation but underestimated the claimable value of specialised assets unique to aged care facilities. - Complex Asset Composition:
The property included a mix of residential units, medical facilities, communal areas, and outdoor amenities, requiring detailed assessment and classification under Division 40 (Plant and Equipment) and Division 43 (Capital Works). - Planned Renovations:
The client planned to upgrade the facility within three years, necessitating a robust asset register to maximise write-off allowances during renovations.
Overview
A client approached TDQS after purchasing an aged care centre for $25 million, seeking to optimise their tax depreciation benefits. The facility featured state-of-the-art accommodations, communal spaces, and specialised healthcare equipment, yet the client was unaware of the full scope of tax deductions available. Through our expertise, we identified significant depreciation opportunities, provided a detailed asset register, and unlocked substantial cash flow improvements.
Challenges
- Overlooked Depreciable Assets:
The client had a general understanding of depreciation but underestimated the claimable value of specialised assets unique to aged care facilities. - Complex Asset Composition:
The property included a mix of residential units, medical facilities, communal areas, and outdoor amenities, requiring detailed assessment and classification under Division 40 (Plant and Equipment) and Division 43 (Capital Works). - Planned Renovations:
The client planned to upgrade the facility within three years, necessitating a robust asset register to maximise write-off allowances during renovations.
TDQS Solution
- Comprehensive Asset Review:
TDQS conducted a thorough evaluation of the aged care centre, identifying all claimable assets and categorising them under the appropriate divisions. - Creation of an Asset Register:
A detailed asset register was prepared, ensuring the client could track assets for depreciation and future write-offs seamlessly. - Optimised Depreciation Schedule:
TDQS developed a tailored depreciation schedule, capturing both Division 40 and Division 43 deductions and preparing for future renovations.
Key Findings
- Division 40 (Plant and Equipment):
- Identified $4.8 million in movable assets, including:
- Medical beds and hoists.
- Communal furniture such as lounge seating and dining tables.
- HVAC systems and lighting specifically designed for aged care.
- Identified $4.8 million in movable assets, including:
- Division 43 (Capital Works):
- Identified $10.5 million in structural improvements, including:
- Resident rooms, bathrooms, and accessibility enhancements (e.g., ramps, handrails).
- Outdoor amenities like pathways, gardens, and shaded seating.
- Identified $10.5 million in structural improvements, including:
- Future Renovation Write-Off Allowances:
- Estimated $1.2 million in write-offs for asset disposals related to planned upgrades.
Results
- Immediate Tax Savings:
The initial depreciation schedule uncovered $15.3 million in claimable deductions, significantly reducing taxable income and boosting cash flow. - Enhanced Long-Term Value:
With a detailed asset register in place, the client is positioned to maximise write-off allowances for future renovations, ensuring ongoing financial benefits.
Compliance and Confidence:
The client now has a fully compliant depreciation schedule, minimising audit risks and ensuring peace of mind.
Key Takeaways
- Specialised Assets Offer Hidden Value:
Many aged care-specific features, like accessibility installations and medical equipment, are often overlooked for depreciation. - Future-Proof with an Asset Register:
Preparing an asset register from day one ensures seamless tracking of disposals, additions, and write-offs during future renovations or upgrades. - The TDQS Advantage:
Our in-depth understanding of aged care facilities ensures no claimable asset is missed, maximising both immediate and long-term financial benefits.
Maximise Your Aged Care Centre Investment Today
If you own or manage an aged care centre, TDQS can help you unlock the full depreciation potential of your assets. From identifying unique claim opportunities to preparing for future renovations, we are your trusted partner in tax depreciation.
Contact TDQS Today for a Free Consultation
- Get a Comprehensive Depreciation Schedule
- Boost Your Cash Flow with Expert Assistance
