Typically, when a client purchases a property with the intention to renovate – they get started on this straight after settlement as they do not realise that Plant & Equipment items (Division 40) are revalued at settlement.
Residual Value Write Off claim is also important – For example, if you wish to renovate the kitchen, bathroom or laundry in a property which was built on or after 18 July 1985, the assessor will be able to determine the residual value for these.
Although these items may be in a dilapidated condition, they will still have value.
Throwing away/demolishing these items is like throwing away money!!