Everything an Australian property investor needs to know about tax depreciation — in one place, in plain English.
This guide brings together everything an Australian property investor needs to understand about tax depreciation — what it is, what you can claim, the rules, the methods, and how to maximise it. Use the links throughout to dive deeper into any topic.
Every claim is made up of capital works (Division 43) on the building structure, and plant & equipment (Division 40) on removable assets. Together they form your tax depreciation schedule.
New builds unlock the full plant & equipment allowance; established homes are affected by the post-2017 rules but still claim capital works and any new assets.
Plant & equipment can be claimed by diminishing value or prime cost — one front-loads your deductions, the other spreads them.
Both previous and future renovations are claimable — including work a previous owner did that a quantity surveyor can estimate.
We prepare schedules for Airbnb & short-stay, SMSF property, commercial, industrial and hospitality properties.
Tax depreciation is the decline in value of an income-producing building and its assets over time, which the ATO lets property investors claim as a deduction against their taxable income — every year they own the property.
It depends on the property's age, type, construction cost and fit-out. New residential properties commonly claim $8,000–$15,000+ in year one; commercial and hospitality far more. The only way to know your figure is a schedule or our calculator.
For any property where the construction cost isn't known, yes — the ATO recognises quantity surveyors as appropriately qualified to estimate those costs. Accountants generally cannot.
Up to 40 years. You have it prepared once and your accountant uses it every year.
Yes — 100% deductible in the year it's incurred.
Request a quote today, or estimate your deductions in 60 seconds with our calculator.
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