Tax Time Guidelines for Queensland Body Corporates and Property Owners

Tax season is here, and Queensland body corporates and property owners must prepare to maximize deductions and stay compliant. Strata Umbrella Property Risk Management guides you through insurance valuations, sinking fund forecasts, and depreciation schedules for effective strata property management. Here’s your tax time checklist.

Sinking Fund Forecasts

A sinking fund forecast is vital for body corporates under Queensland’s Body Corporate and Community Management Act 1997. It plans capital expenses for 10 years, covering repairs like repainting or roof fixes.

• Tax benefits: Sinking fund contributions are usually deductible for rental property owners. Special levies for capital works aren’t deductible but may increase your property’s cost base for capital gains tax (CGT). Update forecasts every 5 years to avoid unexpected levies.

• Our tip: Hire a quantity surveyor for accurate forecasts. Strata Umbrella connects you with experts for tailored budgets.

Insurance Valuations: Protect Your Asset

An insurance valuation determines your strata property’s replacement cost, ensuring coverage for events like fires or storms.

• Tax implications: Premiums paid from administrative or sinking funds are deductible for income-producing properties. Confirm the fund used with your body corporate manager.

• Our advice: Update valuations regularly, as Queensland premiums are rising (some by 25-40%). Strata Umbrella provides professional valuation services for compliance.

Depreciation Schedules: Boost Tax Savings

A tax depreciation schedule helps investors claim deductions for property wear and tear, including structure and assets like appliances.

• Key points: The schedule’s cost is deductible, and missed claims can be recovered for two years. Update schedules after renovations. Common property in strata schemes is also depreciable.

• Our expertise: Strata Umbrella partners with quantity surveyors for ATO-compliant schedules, maximizing your returns.

Tips for Body Corporates and Owners

1. Check Records: Separate administrative and sinking fund expenses in budgets. Funds cannot be mixed, affecting tax claims.

2. Use Experts: Engage professionals for forecasts, valuations, and schedules. Strata Umbrella connects you with trusted Queensland experts.

3. Know Deductions: Regular levies are deductible; special levies may not be. Verify levy purposes with your manager.

4. Plan for CGT: Track contributions and improvements to adjust your cost base, reducing CGT when selling.

Strata Umbrella’s Support

Strata Umbrella Property Risk Management helps Queensland body corporates and owners with tailored risk management solutions. We connect you with experts for forecasts, valuations, and schedules to simplify tax time.

Contact us to prepare your property for 2025. Or call us – 07 56210412 to book a free consultation.

Disclaimer: Consult a tax professional for personalised advice, as rules vary by circumstance.