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Is a Depreciation Schedule worth it for my property?

A depreciation schedule is worthwhile for the majority of Australian properties.

The reason for this is that even if you’re eligible to claim plant and equipment deductions (due to the 2017 Budget), you are able to claim the Building Allowance on properties built after 1987. At 2.5% per annum of the total construction cost, this means that it will only take a build cost of $50,000 to result in yearly deductions of $1250.

Even for older properties (built before 1987), any renovations, extensions or additions totalling over $50,000 will result in those same deductions.

If you’re lucky enough to have bought before the 2017 Budget (and rented the property out before 1 July, 2017), you are able to claim the deductions on plant and equipment, which generally add up to thousands of dollars for each year’s claim.

Follow the flowchart below to see if a depreciation schedule is likely to be worthwhile for your own property.

Depreciation, property investment, worthwhile, tax savings

Is a depreciation schedule worthwhile for your property?

To see roughly how much you could be claiming, use our calculator to get a free estimate.

About Tyron Hyde

Tyron Hyde is a director of quantity surveying firm Washington Brown. He is regarded as one of the industry's leading experts in property tax depreciation, is regularly quoted in the media & asked to speak at conferences. -