Unit 5705, 560 Lonsdale Street

High-rise CBD apartments combine modern construction with premium finishes — a combination that drives strong depreciation outcomes. For investors at this price point, a well-prepared schedule makes a meaningful difference to after-tax returns.

The Property

Unit 5705 at 560 Lonsdale Street is a premium apartment on level 57 of one of Melbourne CBD’s most recognisable high-rise developments. Acquired for $2,400,000, the property’s modern construction and high-specification finishes create a strong depreciation profile across both Division 43 capital works and Division 40 plant and equipment — the two streams that together determine the total claimable value of a Tax Depreciation Schedule.

The Brief

MCG was engaged to prepare a Tax Depreciation Schedule capturing the full extent of eligible allowances for the property. For a premium CBD apartment at this level of finish and price point, accuracy in identifying and valuing each eligible item is essential — the difference between a generic estimate and a properly prepared schedule can amount to tens of thousands of dollars in additional deductions over the schedule’s life.

Our Approach

MCG assessed the full apartment — identifying all eligible capital works components and individually cataloguing each plant and equipment item. Premium kitchen appliances, bathroom fixtures, floor coverings, window furnishings, hot water systems, and air conditioning infrastructure were each valued and assigned appropriate effective life rates in line with ATO guidelines.

The schedule was structured to maximise deductions in the early years of ownership, giving the investor the strongest possible cash flow position from the outset while ensuring total deductions are fully captured across the schedule’s life.

The Outcome

A Tax Depreciation Schedule delivering a first-year deduction of $40,170 and total forecast deductions of $967,200 — capturing the full depreciation potential of a premium Melbourne CBD apartment and enhancing the investor’s after-tax return throughout the life of the investment.