New Build
Depreciation Calculator
Enter your construction cost to estimate your depreciation deductions. Then order your tax depreciation schedule to start claiming.
Important: Calculator results are not accepted by the ATO for depreciation claims. Click here to order an ATO-compliant depreciation schedule.
Estimated Depreciation Claims (First 10 Years)
$150,00 – $180,000*
*Results will vary based on your individual property and material selections.Important: Calculator results are not accepted by the ATO for depreciation claims. Click here to order an ATO-compliant depreciation schedule.
| Financial Year | Capital Works Deduction | Plant & Equipment Deduction | Total Deduction |
|---|---|---|---|
| 1 | $10,500 | $13,500 | $24,000 |
| 2 | $10,500 | $9,000 | $19,500 |
| 3 | $10,500 | $8,000 | $18,500 |
| 4 | $10,500 | $6,500 | $17,000 |
| 5 | $10,500 | $5,500 | $16,000 |
| 6 | $10,500 | $5,000 | $15,500 |
| 7 | $10,500 | $4,000 | $14,500 |
| 8 | $10,500 | $3,500 | $14,000 |
| 9 | $10,500 | $3,000 | $13,500 |
| 10 | $10,500 | $2,500 | $13,000 |
| Years 1–10 Total Depreciation | $105,500 | $60,500 | $165,500 |
| Lifetime Depreciation (40 Years) | $425,000 | $62,000 | $487,000 |
Assumptions & Notes
- 85% of construction cost is allocated to Division 43 Capital Works, depreciated straight-line at 2.5%.
- 15% of construction cost is allocated to Division 40 Plant & Equipment, depreciated at 15% DV with a +20% uplift in year 1 for low pooling & items under $300.
- Schedule shows the first 10 years only.
- ±10% range shows possible variation in combined deductions.
Frequently Asked Questions
This calculator provides an indicative estimate of tax depreciation deductions available on a newly built residential investment property – both over the first 10 years and across the full 40-year effective life. It includes both Capital Works (Division 43) and Plant & Equipment (Division 40) components.
No. This is a guide only. A formal depreciation schedule prepared by Washington Brown will provide an accurate ATO-compliant depreciation schedule.
You should enter the build cost only, excluding land. This typically includes:
- Building structure
- Fixtures and finishes
- Builder margins and preliminaries
It should not include land value, stamp duty, or legal costs.
Landscaping, demolition and site clearing cannot be claimed, which is why the 40 year total does not match the total construction cost entered.
Capital Works are estimated at 2.5% per year of the building cost over 40 years, in line with current tax legislation.
Plant & Equipment is estimated as a portion of construction cost, and depreciated using the diminishing value method, which brings forward deductions into earlier years.
No. Depreciation can only be claimed when the property is income-producing (i.e. rented or genuinely available for rent).
Not fully. For residential properties purchased after 9 May 2017, buyers generally cannot claim depreciation on previously used Plant & Equipment. This calculator is primarily relevant for new builds or substantially renovated properties.
The range reflects different property types, asset mixes, and assumptions. Actual deductions will vary depending on:
- Quality of fit-out
- Asset composition
- Construction details
In most cases, yes. Depreciation is a non-cash deduction, meaning it can reduce your taxable income and potentially increase your after-tax cash position.
If you want accurate figures you can rely on for tax purposes, you should order a professionally prepared depreciation schedule. This ensures:
- Compliance with ATO requirements
- Maximum legitimate deductions
- Supportable figures for your accountant