$121.88M in total depreciation deductions identified for Canberra's landmark Charter Hall office tower — acquired for $315M in one of the ACT's largest office transactions.
When Charter Hall acquired 1 Constitution Avenue for $315M, they weren’t just buying a building — they were acquiring one of the most significant depreciation opportunities in the ACT commercial market. MCG’s schedule made sure that value was fully captured.
1 Constitution Avenue, Canberra forms part of the Canberra Centre commercial precinct and is recognised as a landmark A-Grade office asset. Acquired by Charter Hall in 2021 for a publicly reported $315 million — one of the largest office transactions in Canberra’s history — a Tax Depreciation Schedule was prepared to assess the full extent of claimable allowances across both Division 43 (capital works) and Division 40 (plant and equipment).
Institutional-grade commercial buildings of this calibre carry significant embedded depreciation value. The combination of high-specification base building construction, premium services infrastructure, and modern plant and equipment creates a depreciation profile that, when accurately captured, delivers substantial long-term tax benefits to the investor.
The scale of this asset — a landmark Canberra tower acquired at one of the highest prices ever paid for ACT office property — meant the depreciation assessment required the same level of rigour applied to the transaction itself.
MCG prepared a comprehensive Tax Depreciation Schedule covering all eligible building components, leveraging publicly benchmarked acquisition data alongside detailed asset analysis. Division 43 capital works allowances were calculated across the building’s full construction cost history, while Division 40 plant and equipment items were individually identified, valued, and assigned appropriate effective life rates.
The schedule was structured to maximise front-loaded deductions in the early years of ownership, providing the greatest immediate cash flow benefit to the investor while ensuring the full depreciation potential of the asset was captured over the schedule’s life.
A Tax Depreciation Schedule identifying a first-year deduction of $2,748,038 and total forecast deductions of $121,883,131 — reflecting the scale and complexity of one of Canberra’s most significant commercial acquisitions and demonstrating the substantial long-term tax benefits available within institutional-grade commercial property.
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