What is a Property Tax Depreciation Schedule?
Depreciation itself means that the values of particular assets decrease over time because of constant usage (wear and tear). Tax depreciation schedules are documents that list all of these assets and their respective decline in value. Property investors can then use this data to claim their annual income tax returns. Essentially, an income tax depreciation report helps you reduce your taxable income and claim tax deductions on your investment property.

An Australian tax depreciation schedule is usually calculated by determining the original construction cost of the building and the cost of property plant and equipment assets.
A residential tax depreciation schedule, for example, might show that the original construction cost for a house was $250,000. The depreciation deductions are separated into two categories:
- Division 43: Capital Works/Building Allowance
- Division 40: Plant and Equipment
Let’s say the Capital Works Allowance component makes up $220,000 of the $250,000 total cost. This includes structural elements, such as roofing, shower screens or windows. Investors are eligible to claim this cost at 2.5% per annum.
The plant and equipment component will form the other $30,000 portion of the total cost and include the cooktop, exhaust fans, window curtains, etc. These depreciable assets typically depreciate faster based on their effective lives.
Why are tax depreciation schedules required?

A rental property depreciation report is required by law if you want to reduce the taxable income on your investment property through depreciation. You are not allowed to estimate the construction costs yourself. Furthermore, you would wish to engage a qualified quantity surveying organisation to do your tax depreciation.
Washington Brown was founded in 1978, which makes it one of the oldest, most respected quantity surveying organisations in Australia.
Moreover, once you schedule a tax depreciation consultation with us, our quantity surveyors will determine if an inspection is required for your investment property and organise it as fast as possible.
Our property depreciation schedules are based on three crucial pillars:
- accounting experience
- construction industry knowledge
- detailed understanding of property related tax law
Frequently Asked Questions
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Not understanding the importance and positive outcomes of a QS carrying out the report. Back to top
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Worried your proceeding with a report that might not be worthwhile? Back to top
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Information on the rental property too hard to get your hands on? Back to top
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Why can’t a QS estimate renovation work if the costs are known? Back to top
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Washington Brown seems too expensive compared to cheaper companies Back to top
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My Rental Property is really old – how can there still be depreciation left to claim? Back to top
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How far can you backdate your tax? Back to top
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Can you claim on renovations that have been carried out by previous owners? Back to top
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Can you claim depreciation on an overseas property? Back to top
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Why use a Quantity Surveyor to prepare my tax depreciation schedule and not an Accountant? Back to top
Get a quote for a property tax depreciation schedule on your rental property – or use our complimentary property tax depreciation calculator to work out your potential cash flow tax saving.
Washington Brown’s fee is 100% Tax Deductible.