Tax Depreciation
Schedule Canberra

The Australian Taxation Office (ATO) allows investment property owners to claim deductions for 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 because 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.)

Tax Depreciation helps: 

• Reduce your taxable income which results in more cash in your pocket 
• Increase your cash flow which could enable you to buy your next investment property sooner 
• Provide a greater financial return for your investment supporting your financial freedom  

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/Principal 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 Canberra, many investors purchase established properties in inner-south suburbs like Kingston, Narrabundah, or older homes in O'Connor. While the original structure may be older, any refurbishments, extensions, or renovations completed by previous owners since 1992 are still depreciable. In summary, 99.9% of investment properties will be entitled to some form of depreciation deduction.

Yes, and this is often a "hidden win" for long-term investors. The structural component of an investment property (Division 43) has an effective life of 40 years, meaning deductions can be claimed on any property built post-September 1987.

If you haven’t been claiming, you haven’t necessarily lost out on those savings forever. Our local specialists understand the specific nuances of tax depreciation Canberra property owners face, particularly when it comes to "catching up" on missed deductions. Your accountant can generally use our report to retrospectively amend your tax returns for the previous two financial years.

It is a completely legitimate process, and one the ATO actually encourages, to ensure your tax records are accurate. For many of our clients, this results in a significant, immediate boost to their cash flow that they weren't even aware they were entitled to.

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 work done. The most typical being: 

• Bathroom – commonly worth up to $25,000 
• Kitchen – commonly worth up to $30,000 
• Floor & Wall Tiles – commonly worth up to $10,000 

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 ATO as the most suitably qualified professionals 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. 

Yes. Our expert team specialises in creating a detailed depreciation report for all asset classes. Whether you own a warehouse in Fyshwick, a retail space in Reid, or a Canberra office, we ensure your commercial investment property is fully optimised for tax savings. Our Canberra depreciation schedules cover both capital works deductions and plant and equipment, ensuring you pay less tax by accurately identifying every depreciable element of your business premises.

Obtaining a tax depreciation report in Canberra is a seamless process designed to save you time and money. You can contact our Canberra office, centrally located near Civic, to get started. Once you provide access, our expert team coordinates the key pickup directly from your property manager, whether they are based in Manuka, Dickson, or anywhere across the ACT, to conduct the professional site inspection. We work with all major banks across Australia and the territory to ensure our property depreciation reports meet the highest compliance standards, helping you pay less tax on your annual tax return.

It is vital to distinguish between the two to maximise returns. A capital works deduction refers to the "bones" of the building (bricks/concrete), while plant and equipment are removable items. A detailed depreciation report from Acumentis ensures both are captured correctly. This is the key to ensuring you don't leave money on the table when you pay your annual tax.

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

• Individuals: You can generally amend your tax returns for up to 2 years from the date of assessment.
• Companies, trusts, or complex structures: May have up to 4 years to amend returns. 

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 exactly 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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