A Quantity Surveyor report can significantly reduce tax liabilities for doctors and medical practices by identifying eligible assets for depreciation. Failing to obtain such a report could result in missed opportunities for substantial tax savings.

Maximising depreciation benefits

The Australian Taxation Office (ATO) recognises quantity surveyors as professionals qualified to produce reports that calculate the cost of items for the purposes of depreciation. Some quantity surveyors specialise in tax depreciation. Their expertise ensures compliance with tax regulations while maximising potential deductions.

Quantity Surveyor reports offer valuable insights making them particularly useful for individual doctors and medical practices, by outlining the correct depreciation deductions that can be claimed every year at tax time, ensuring you pay less tax and see a greater return on your investment.

Value for Medical Professionals

Quantity Surveyor reports play a critical role in helping medical practices and individual doctors manage their tax obligations efficiently. These reports help medical professionals claim full depreciation on a wide range of assets, including medical equipment, fit-outs, and structural improvements.

For medical practice owners, Quantity Surveyor reports evaluate the building’s structure and its contents to capture all eligible deductions. By ensuring medical professionals can claim every possible tax benefit, Quantity Surveyor reports also assist in improving cash flow, allowing for reinvestment opportunities to grow your practice.

Depending on who incurs the costs, the lessee may also benefit by claiming deductions on leasehold improvements.

Whilst the annual deductions provided by these reports may seems small, they can significantly impact your tax position in the long-term.

For you and your accountant, a Quantity Surveyor report serves as an essential document for structuring accurate depreciation schedules. The report typically includes:

• Capital works deduction: This covers the structural elements of the building.
• Plant and Equipment: Covering assets like medical devices, furniture, and technology, which are depreciated at different rates.

For medical practice property owners, claiming the capital works deduction upfront provides greater cashflow to support the running of the practice. The flipside of this is that claiming these deductions will impact any capital gain from the eventual sale of the property as they need to be added back to the calculations. We often find that medical practice property owners prefer this as they get the deduction upfront and have the cash from the sale proceeds to fund any tax bill that arises upon sale.

How Pilot utilise Quantity Surveyor reports

For our medical clients, our advisors use these reports to ensure the correct deductions are included in your tax returns. As they have been prepared by qualified specialists, we can also rely on these reports without undertaking significant reviews into all of the assets purchased.

Contact Pilot

If you’re a doctor or practice owner, Pilot can advise you on how a Quantity Surveyor report could benefit you or your practice. To learn more please contact Angela Stavropoulos or Kristy Baxter on taxmed@pilotpartners.com.au or (07) 3023 1300.