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Depreciation rates cut will hit landlords' pockets

Monday 23rd of May 2005

The reduction in building rates depreciation from 4% diminishing value to 3% was announced as part of the budget package, and applies to all property acquisitions purchased after budget day.

The changes will mean that on a $200,000 property the depreciation tax claim will fall from $8000 (at the 4% rate) to $6000, a 25% decrease. >p>The move could have cash implications for new investors...

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