So often we hear from property professionals, accountants and investors that they just didn't know about options other than BMT Tax Depreciation when it came to purchasing or recommending quality depreciation schedules.
BMT have certainly established themselves extremely well in the market, due in large part to being an early market entrant with a well qualified team and impressive amounts of marketing and advertising over a number of years. BMT's almost monopolistic hold on the depreciation market means they are the most visible and the most expensive, but it doesn't necessarily mean they are your only option, or even then best option for your circumstances.
When we ask our market about why they used BMT in the past, here is what they tell us:
A quick Google search will reveal a number of competitors delivering depreciation schedules for investors. Long established competitors include Washington Brown, Deppro, Capital Claims Tax Depreciation and many more. You can find out more about some of these quantity surveyors by reviewing their website for content, looking up their teams on LinkedIn, checking out their Facebook pages etc.
There are also a lot of budget providers in the industry, but we are focusing here on real alternatives for quality schedules, from established providers that will still be around should you ever be audited.
Yes! BMT Tax Depreciation does offer an Australia-wide service, as do the competitors listed above. BMT's head office is in Newcastle, NSW with offices and property inspectors operating around the country in all capital cities and key locations. Washingtown Brown, Deppro and Capital Claims Tax Depreciation and MCG all have a very similar set-up. Capital Claims has a Nationwide service with fixed pricing regardless of the location.
Admittedly BMT set the benchmark for quality reporting early and it took competitors a little while to catch up. However these days, all of the key features of the BMT report that had once put it ahead of it's competitors are now standard features in the depreciation schedules offered by other established providers.
Most established competitors report both diminishing value and prime cost methods, incorporate low-cost and low-value pooling and immediate write provisions, project deductions over 40 years and can offer split reporting and .csv files for upload.
That's great, but chances are your clients are still paying more than they need to for a great result. At a standard fee of $770.00 incl GST, fees for BMT reports are still about $100.00 per schedule more expensive than they need to be, though NTAA members are able to order reports for $699.00 - so that's pretty good.
Reports from other established competitors range from about $590.00 up to $700.00. The fee for a Capital Claims Tax Depreciation Schedule is a little under $700.00 incl GST making it a great value option, especially when you consider that asset scrapping (important for renovated properties) is included in our schedule as a standard where it applies. Scrapping reports, replacement reports and report updates are all extra charges at BMT but are offered free for clients of Capital Claims Tax Depreciation.
BMT certainly had the lion's share of experts once. But over the years many of their experienced team members have branched out on their own - Bob McCansch and Glenn Cartwright as Quanto, myself as Capital Claims Tax Depreciation and Mike Mortlock and Marty Sadlier as MCG Quantity Surveyors. BMT's two founding Directors, Brendan Farrugia and Tom Plenty, both highly credentialed quantity surveyors exited BMT in 2015 via a majority sale of the business to two private equity firms. Qualified and experienced quantity surveyors Bradley Beer and Nol Petrohelos remain as CEO and executive member respectively.
The industry has a number of well credentialed quantity surveying experts:
Mark Wilkins, Capital Claims Tax Depreciation - Qualified quantity surveyor with a degree in Construction Management from the University of Newcastle, member of the Australian Institute of Quantity Surveyors, 9 years as Associate and then Associate Director of BMT leading the tax depreciation division. Founder of Capital Claims Tax Depreciation in 2008. Mark’s specialist expertise have been sought in consultant capacity by professional bodies such as the National Institute of Accountants and the National Tax and Accountants Association, and he has presented at various property and tax seminars and expos nationwide.
Tyron Hyde, Washington Brown - Tyron has a Degree in Construction Economics (UTS) and is an Associate of the Australian Institute of Quantity Surveyors. He began his career at Washington Brown in 1993 and is now the majority shareholder in the business.
Paul Bennion, Deppro - Paul is a qualified Quantity Surveyor with more than 20 years experience. He is an Associate Member of the Australian Institute of Quantity Surveyors, and founded DEPPRO in 1999.
Mike Mortlock and Marty Sadlier, MCG Quantity Surveyors - both Mike and Marty are highly qualified and experienced quantity surveyors. They have specialised in depreciation over many years, having established MCG Quantity Surveyors after both having worked long term at BMT.
BMT is not the only option when it comes to depreciation schedules for commercial property investors. Many of the established businesses above have substantial experience in assessing and reporting of capital allowances and depreciation for major commercial developments.
At Capital Claims Tax Depreciation for example, we have worked for Grocon, Lend Lease and Stockland. We are hotel and hospitality specialists, having completed work for many hoteliers around Australia, and have also found a niche in child care and aged care facilities.
According to MCG's website they also have experience working with Stockland, McDonalds and other large commercial developers. Washington Brown is the go-to for Meriton Apartments.
BMT had done a stellar job over the years establishing exclusive supplier relationships with many professionals in the property and accounting industries. Nobody else in the industry has gone close to attempting the volume of marketing and business development that BMT pushes out.
Having all of those relationships has been fantastic for growing BMT's business. But it doesn't make their depreciation schedules or their service any better than anyone else's.
There is a reason people are moving away from big corporates to smaller, more personalised businesses. Show me anyone who feels personally valued by the likes of CommBank, Telstra or Suncorp. More than ever people are valuing quality, personalisation and value over mass-production and over-pricing. Some people want to deal with large organisations, some people prefer to deal with small to medium owner-operator businesses where they can speak directly to the owner if they like. The key is that you have choice.
So next time you or your clients require a quality depreciation schedule, for a residential or commercial property somewhere in Australia, prepared by an established firm overseen by expert quantity surveyors, you will know of a few options more you can consider!
If you would like to chat with us about depreciation and how we can assist you or your clients, please don't hesitate to get in touch with our expert, friendly team on 1300 922 220.
Find some of our senior team members on LinkedIn -
Kylie Hearne - Office Manager (ex-BMT)
If you are interested in discussing how we can work together to best service your clients please give us a call on 1300 922 220 or get in touch via our Partners enquiry page on our website.