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What is Depreciation?

Depreciation is a tax deduction available to property investors. It allows you to claim a tax deduction for the wear and tear over time on most old or new investment properties. Basically, it recognises that the building itself, plus its internal furnishings and fittings, will become worn over time and eventually need to be replaced. Up-to-date with ATO changes, the Washington Brown TaxMax500™ covers over 500 variables, so literally no stone, brick or smoke alarm is left unturned.

There are two types of allowances available:

  • Plant and Equipment – refers to items within the building, like ovens, air conditioners, carpets and blinds
  • Building Allowance – refers to the constructions costs of the building itself, such as concrete and brickwork.

In terms of building allowance, it doesn’t matter that you may not have paid for the works originally – you, as the current owner, can continue to claim deductions as they continue to depreciate in value.

Our ATO compliant reports show the building allowance as well as a detailed list of all eligible plant and equipment items. Your yearly claimable amount is then pro-rated to your settlement date and provided for up to 40 years.

As with any tax deduction, property depreciation reduces your taxable income. That means more money in your pocket to reinvest in your property or spend on yourself or your family.

As property investors, you want to get the most from your annual tax return. As industry leaders in property depreciation, we guarantee you the maximum tax depreciation on your investment property every time.

Learn more about Property Depreciation Schedules

Office Building in Depreciation

Commercial Property Depreciation

Under Australian tax law, if you own commercial real estate or commercial property that is rented or used for income-producing purposes you are entitled to claim the depreciation of that property against your taxable income. There are two types of depreciation allowances available: depreciation on Plant and Equipment, and depreciation on Capital Allowances. In order to maximise the tax savings on your investment property you’ll need a professionally prepared Tax Depreciation Report or Tax Depreciation Schedule.

Washington Brown Quantity Surveyors are experts in property tax depreciation for investment properties. We have a specialist commercial property depreciation team, solely dedicated to servicing the needs of commercial property investors.

Learn more about Commercial Property Depreciation

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Estimated Results

Years Diminishing Value Prime Cost
Year 1 $0.00 $0.00
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