Property depreciation provides significant tax benefits for Australian investors. Understanding how to calculate and claim depreciation can substantially improve your investment returns through reduced taxable income.
Building Allowance (Division 43)
Claim 2.5% annually on properties built after September 1987:
- Eligibility: Properties constructed after 15 September 1987
- Rate: 2.5% of construction cost per year
- Duration: 40 years from completion
- Evidence: Council records or quantity surveyor assessment
Plant and Equipment (Division 40)
- • Hot water systems, ovens, dishwashers
- • Carpets, blinds, light fittings
- • Air conditioning, security systems
- • Various depreciation rates apply
Quantity Surveyor Reports
Professional depreciation schedules maximize claims:
- Cost: $600-$1,200 for comprehensive report
- ROI: Often pay for themselves in first year
- Accuracy: ATO-compliant calculations and evidence
- Updates: Include renovations and improvements
Depreciation is often overlooked but can provide thousands in annual tax savings. Invest in professional quantity surveyor reports to maximize your claims while ensuring ATO compliance.