“A Tax Depreciation Schedule could boost your return by up to $15,000 in one financial year.”
Nathan King
National Director – Advisory Services
P: 0416 082 499
A tax depreciation schedule allows owners of income-producing properties to claim depreciation allowances. This enables owners to account for the ageing and depreciation of a building and its assets. All tax depreciation deductions are based on property type, age, and historical construction costs.
Deductions can be claimed for two categories.
A tax depreciation schedule for investment property outlines capital allowance and deductions for depreciating assets. This helps reduce income tax on rental income while improving cash flow.
“A Tax Depreciation Schedule could boost your return by up to $15,000 in one financial year.”
Nathan King
National Director – Advisory Services
P: 0416 082 499
Acumentis’ Quantity Surveying team are trained and qualified to undertake inspections and supply detailed tax depreciation reports. On top of this, each individual is fully compliant with the Australian Taxation Office and government legislation. Partnering with the experts at Acumentis means:
To maximise your depreciable deductions, reach out to your local Tax Depreciation specialist below, call us on 1300 882 401 or click below for an instant quote. We serve clients Australia-wide, delivering the same service and turnaround from offices in Brisbane, Gold Coast, Sunshine Coast, Sydney, Melbourne, Canberra, Adelaide and Perth. Our property professionals are always available to deliver insightful advice.
Tax Depreciation
The Australian Taxation Office (ATO) allows investment property owners to claim deductions on the fair wear and tear on an investment property and its fittings. Tax depreciation is essentially a non-cash deduction. You don’t necessarily have to directly incur the expense to be able to claim tax deductions, you can inherit deductions upon acquisition of the property (different rules apply for residential properties purchased post 9 May 2017). Tax depreciation is split into two categories; Division 43 Capital Works Allowances (the building itself) and Division 40 Plant and Equipment (eg. carpets, blinds, A/C, ceiling fans etc.)
A tax depreciation schedule is a detailed report prepared by fully accredited Quantity Surveyors. It sets out the deductions you can claim for both Division 43 capital works and Division 40 plant and equipment.
An Acumentis schedule provides a year-by-year forecast of deductions for the full life of your property, beginning from the first income year. It includes both first-year depreciation values and projections for future claims, giving your accountant everything needed to lodge your tax return correctly.
Tax Depreciation helps;
Division 43 Capital Works Allowances relate to the building’s structural components, such as bricks, roofing, framing, windows, doors, plaster, and kitchen cabinetry.
Division 40 Plant and Equipment covers items like carpets, blinds, air conditioning units, ceiling fans, and kitchen appliances.
For residential properties, Division 40 deductions are generally only available for new properties, unless the ownership structure is through a company or trust.
If the property was purchased after 9 May 2017 and is held in a personal name, Division 40 deductions cannot be claimed for second-hand assets unless those assets were newly acquired by the current owner.
Anyone who owns an income producing property. Tax depreciation is not available on your home/primary place of residence (PPOR).
Depreciation tax deductions are available to residential property investors whose investment property was built after 15 September 1987, commercial properties when built after 20 July 1982 and any refurbishments/renovations/improvements from 27 February 1992. Owners do not have to know when these works were undertaken -- this is researched by the tax depreciation provider who is qualified to estimate construction costs and asset values. Plant and equipment depreciation is also available on all new buildings and all existing properties when purchased prior to 10 May 2017. In summary, 99.9% of investment properties will be entitled to some form of depreciation deduction.
Yes, the structure of an investment property has an effective life of 40 years and tax depreciation can be claimed on an investment property that was built post-September 1987. Another tip that could save investors thousands is that their Accountant can help claim tax depreciation retrospectively, amending up to the past two financial year tax returns and making the most of depreciation deductions that may have been lost through not claiming. It is completely legitimate and the ATO actually encourages people to do this.
Our team of fully Certified Quantity Surveyors (MAIQS, CQS) inspects the property, researches construction costs, and applies ATO-compliant methods to prepare tax depreciation schedules. These schedules provide a detailed breakdown of Division 43 capital works and Division 40 plant and equipment, ensuring accuracy and compliance.
Yes. The fee for your Acumentis depreciation schedule is fully tax-deductible in the same financial year you pay it, helping offset the cost immediately.
We apply ATO-approved method claims (diminishing value and prime cost) to model which approach delivers the highest benefit. This helps us ensure maximum depreciation return, tailored to your investment strategy.
If your property has multiple owners, our reports record percentage ownership and manage split ownership so each party’s claim is apportioned correctly in their own return. This ensures accuracy and avoids compliance issues with the ATO.
Yes. The ATO allows you to claim deductions on eligible structural renovations, even if they were completed by a previous owner. These can include improvements such as new kitchens, bathrooms, extensions, or major upgrades to the building’s structure.
You may also be able to claim on additional assets, such as a furniture package provided by the seller. These previously purchased furnishings are treated as depreciating assets, and your depreciation schedule will show a clear, detailed breakdown of the deductions available.
In some cases, an additional cost may apply if specialised inspections or extra work is required, but this is confirmed before your schedule is finalised.
The ATO allows certain assets under a set dollar amount to be placed into a “low value pool”, which lets you claim higher depreciation rates and accelerate deductions. Examples might include smaller household appliances or fittings with a short effective life. Acumentis identifies eligible items and shows you exactly how the low-value pool impacts your claims with a clear, detailed breakdown in your schedule.
Yes. We design schedules in line with existing legislation, ATO tax rulings such as TR 97/25, and other ATO rulings that affect property investors. This ensures your claims remain compliant year after year.
Yes, and this is where Quantity Surveyors can add serious value with a rental property depreciation schedule. It does not matter if the works were undertaken by a previous owner. When an investment property is purchased, the property investor has also purchased the entitlement to make a depreciation claim on all of the property’s improvements.
Most houses 10+ years old will have had works done. The most typical being:
On a 10-30 year old property there is $65,000 right there which could be detailed in a tax depreciation schedule.
This can add up to $1,625 per year for the next 40 years (2.5% x $65,000), depending on the dates of renovation completion.
If a client is about to renovate an investment property it may be worth recommending a pre-renovation inspection. This inspection allows a Quantity Surveyor to identify what assets or capital works are going to be demolished or thrown out. Value can be assigned to these assets and they can be written off as an immediate tax deduction. A pre-renovation inspection and ‘scrapping report’ can save thousands which can offset the loss made through the renovation period.
Quantity Surveyors are recognised by the Australian Taxation Office (ATO) as the most suitably qualified professional to estimate the depreciable expenditure spent on the property prior to its purchase, as well as the value of the fittings and equipment within the property. In accordance with ATO Tax Ruling 97/25, if a residential investment property, for example, was constructed after September 1987 and/or construction costs are unknown, a registered and qualified Quantity Surveyor must be engaged to produce a commercial or residential tax depreciation schedule. Unfortunately, an Accountant cannot do this for investors.
Our investment property depreciation schedules start from $600 + GST.
We’ll provide you with one tax depreciation schedule that lasts up to 40 years of claim and the fee is 100% tax-deductible.
We can also undertake a retrospective tax depreciation schedule if you haven’t been claiming deductions so that you don’t miss the tax benefits for your commercial or residential investment properties.
ATO Amendment Period
This means you can backdate your depreciation schedule to the date the property was first used for income-producing purposes, but you can only claim missed deductions for the years still within the amendment window.
To find out how much a depreciation schedule costs for your property, add the details using the link below to receive your obligation-free quote.
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