Tax Depreciation
Schedule Gold Coast

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 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.

To prepare accurate reports, a Quantity Surveyor will require key information about the investment property’s details. This typically includes the purchase price, settlement date, property type, and any available construction cost information.

Where construction costs are not known, qualified professionals within the construction industry and quantity surveying services can estimate these costs in accordance with Australian Taxation Office guidelines. Once assessed, we provide depreciation schedules that outline eligible capital works deductions and plant and equipment depreciation for use in your tax return.

Anyone who owns an income-producing property. Tax depreciation is not available on your home/primary place of residence (PPOR). 

Tax depreciation reduces taxable income by allowing property investors to claim depreciation on eligible building components and assets. Because depreciation is a non-cash deduction, it can result in less tax payable without requiring additional out-of-pocket spending.

If you’re seeking support with tax depreciation Gold Coast property investors can trust, a properly prepared depreciation schedule from Acumentis helps ensure all eligible deductions are identified, supporting stronger cash flow outcomes across each financial year.

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 Adelaide, many investors purchase older character homes in suburbs like Prospect or Unley. 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. Commercial depreciation schedules are available for eligible commercial properties, including offices, retail spaces, industrial buildings, and mixed-use developments.

Property owners can claim depreciation on both structural elements under Division 43 (capital works deduction) and eligible plant and equipment assets under Division 40, subject to current legislation. A professionally prepared depreciation report ensures all allowable deductions are identified and applied correctly.Learn more about Tax Depreciation for Commercial Properties.

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 has the potential to save investors thousands is that their Accountant can help claim tax depreciation retrospectively, amending up to the past two financial years' 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. 

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: 

• 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. 

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 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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