Tax Depreciation Schedule Archives

What is a tax depreciation schedule?

A tax depreciation schedule is a report that breaks down the building into two components.

Firstly you have the building allowance – which relates to the structure of the building. This includes items like brickwork, concrete, roofing and kitchen cabinets. These items depreciate over a 40 year period at fixed rate of 2.5% of the original construction cost.

Secondly, the property contains plant and equipment assets. These assets include fixtures and fittings such as a dishwasher, carpet, light fittings, air conditioners and window blinds.

These items wear and tear quicker – which means you can claim them at a faster rate.

Your tax depreciation schedule will separate the two in the report, and provide a yearly tax deduction to use in your tax return.

What Can I Claim?

If you have purchased a brand new property, and it was never owner occupied, then you can claim deductions on the both the Building Allowance and Plant & Equipment components.

However, if you have purchased a second-hand residential property after 8 May, 2017, then you likely can only claim on the Building Allowance.

This is due to the Federal Budget changes to depreciation in 2017.

To be eligible for Building Allowance deductions, the property must have been built after 1987. However, if the property has been renovated or a granny flat has been added since 1987, you can claim deductions on these components.

How Much Can I Claim?

You can use the Tax Depreciation Schedule Calculator to work out your estimated tax depreciation claim.

Where Do You Provide Tax Depreciation Reports?

We provide Depreciation Schedules in the following locations:

Tax Depreciation Schedule Articles:

3 Reasons Why You May Not Need a Depreciation Inspection

Video about Latest changes in claiming property depreciation.

Hotel Pub Depreciation Schedules – A Complete Guide

Tax depreciation is one way a business can maximise its returns. Once utilised, it becomes a tool for success, but few know how to take advantage of it. In this pub and hotel depreciation guide, you’ll learn what you need to ensure you maximise Australian tax laws. What is a Pub or Hotel Depreciation Schedule? […]

Low Priced Property, High Depreciation Ratio

Did you know? Did you know that lower-priced property often has a higher depreciation ratio in relation to the purchase price? During one of my recent media interviews, a journalist asked me to explain my comments on this issue. Most of us know that higher-priced property tends to rent on a yield far less than […]

Three Most Commonly Missed Items Property Investors Can Claim

Claiming depreciation on residential property is one of the most important steps in an investor’s journey. But those new to property investing often overlook some important key items of depreciation. The three most commonly missed items property investors can claim are: • Design and professional fees • Council costs • Builder’s profit Most people know […]

difderence between residential and commercial depreciation

Differences Between Commercial And Residential Property Depreciation

If you own your own business, are you currently leasing commercial space but considering buying your own premises? Or are you considering investing in your next property but can’t decide between a commercial or residential investment? Commercial property has fared far worse than residential property since Covid and beyond. The number of transactions has plummeted. […]

The Ultimate Guide to Rental Property Tax Deductions

All property investors must consider tax deductions. Australia has clear rules in place. The Australian Taxation Office (ATO) outlines the basics, but here’s what you really need to know. There’s one key question to ask yourself when you buy an investment property. What can I claim? It’s a simple question, but one that doesn’t have […]

Investing in a brand new property versus second-hand property: The Tax Depreciation perspective

The recent depreciation changes have the greatest impact on the types of property you may choose to invest in. Some people prefer to invest in brand-new properties, while others opt for older property that they can renovate and resell for profit. So, which is the better investment strategy? Let’s look at this in actual finite […]

Statistics Don’t Lie – Depreciation Schedule inspections

THE NUMBERS are in. There’s no denying it. It’s now a fact that not every property needs a depreciation schedule inspection for the maximum tax deductions to be claimed. The truth is that the majority don’t need a physical inspection, saving you time and money. We’ve been saying this for a long time, but you […]

Case Study – Old House Depreciation (Built After 1987)

Client Name and Unit Number have been altered for privacy. Marie came to Washington Brown looking to maximise her tax depreciation deductions, having purchased a second-hand investment property in 2018. The house was originally built in 2000 and was purchased for $1,200,000 in 2018. The two storey house consisted of 4 bedrooms, 2 bathrooms and […]

See How Paul Reduced His Taxable Income By Over $16,000

Client Name and Unit Number have been altered for privacy. Having recently settled on an off-the-plan apartment in Clayton, Victoria, Paul’s accountant suggested he contact Washington Brown to maximise his tax deductions. The 74sqm, 2 bedroom, 2 bathroom apartment was purchased for $559,000 in 2020. As Paul was the first owner and had never occupied […]