Property Depreciation Calculator
Estimate the depreciation deductions available on your investment property to reduce your taxable income.
What is property depreciation?
Property depreciation is a non-cash tax deduction that recognises the wear and tear on your investment property and its fixtures. There are two types: Division 43 (capital works — the building structure itself) and Division 40 (plant and equipment — items like carpets, blinds, air conditioning, and appliances).
Division 43 — Capital works
The building structure can be depreciated at 2.5% per year over 40 years for properties built after September 1987. This applies to the construction cost of the building, not the land value.
Division 40 — Plant and equipment
Individual items within the property (carpet, blinds, hot water systems, ovens, etc.) can be depreciated based on their effective life as determined by the ATO. Note: since May 2017, plant and equipment depreciation on second-hand items in residential property is limited for subsequent owners.
How much can you claim?
A typical new investment property might yield $8,000-$15,000 in depreciation deductions in the first year. Even older properties can deliver meaningful claims through capital works deductions. A quantity surveyor depreciation schedule is recommended to maximise your claim.
Disclaimer: This calculator provides rough estimates only. For accurate depreciation deductions, a quantity surveyor depreciation schedule is required. This does not constitute financial or tax advice. Consult a qualified professional before making investment decisions.