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Depreciation Schedule Estimator

Calculator

Estimate property depreciation deductions for your investment property. Covers both capital works (Division 43) and plant & equipment (Division 40).

Free to useNo data storedAI insightsUpdated: February 2026

Property depreciation is one of the most powerful tax deductions for Australian property investors — yet over 80% of investors don't claim it properly. A depreciation schedule from a quantity surveyor typically identifies $5,000-$15,000 in first-year deductions for an established property, and $15,000-$25,000+ for new builds. There are two types: Division 43 (capital works — the building itself at 2.5% p.a.) and Division 40 (plant & equipment — carpets, blinds, appliances). The 2017 changes restricted plant & equipment claims on second-hand properties, but building depreciation remains fully claimable.

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$

Total purchase price of the investment property

$

Original cost to build the property — ATO allows 2.5% p.a. deduction on this

Properties built after 1985 qualify for building depreciation

Type affects typical depreciation amounts

Newer properties have significantly higher depreciation

Renovations by YOU (post-2017) are depreciable; prior owner renovations are not for plant & equipment

Furniture and fittings are depreciable plant & equipment

Real-World Examples

5-Year-Old Apartment

2-bed apartment built in 2021, purchased for $650,000. Estimated construction cost $350,000.

Division 43 (building): $8,750/year for 35 remaining years. Division 40 (plant & equipment): ~$4,500 in Year 1, declining. Total Year 1 depreciation: ~$13,250. At 37% tax rate, that's a $4,903 tax refund. Over 5 years: ~$55,000 in deductions = ~$20,350 in refunds.

Frequently Asked Questions

Glossary

Division 43 (Capital Works)
ATO depreciation category covering the building structure itself. Claimed at 2.5% per year of original construction cost for properties built after 1985.
Division 40 (Plant & Equipment)
ATO depreciation category covering removable assets: carpets, blinds, appliances, hot water systems, air conditioning. Each item has a set effective life.
Quantity Surveyor
A qualified professional who prepares tax depreciation schedules for investment properties. The only profession authorised by the ATO to estimate construction costs for depreciation purposes.

Disclaimer: This calculator provides estimates only and should not be relied upon for financial decisions. Interest rates, fees, and policies change frequently. Always verify information with lenders directly. This is general information, not personal financial advice. Consider seeking advice from a licensed mortgage broker or financial advisor.

Last updated: February 2026

How to Use
  1. Enter the property purchase price.
  2. Add construction cost if known (for more accurate Division 43 estimates).
  3. Enter the year the property was built.
  4. Select property type and current condition.
  5. Indicate any recent renovations you've done.
  6. See estimated first-year and five-year depreciation deductions.
Key Information
  • Division 43 (Capital Works): 2.5% p.a. of original construction cost for 40 years. Properties built after 1985 qualify.
  • Division 40 (Plant & Equipment): Carpets, blinds, appliances, hot water systems — depreciated over their effective life.
  • 2017 budget change: Plant & equipment in SECOND-HAND properties cannot be claimed by new owners. If YOU installed it, you can claim it.
  • A professional depreciation schedule costs $600-$800 and is 100% tax deductible — it typically pays for itself 10x over.
  • Average first-year depreciation: New property $15K-$25K. Established (10yrs) $7K-$12K. Older (20yrs) $4K-$8K.
Pro Tips
  • Get a depreciation schedule from a qualified quantity surveyor (not your accountant) — they can inspect the property and identify items your accountant will miss.
  • The $600-$800 cost of the schedule is itself tax-deductible — and it typically saves $5,000-$20,000 in Year 1 alone.
  • If you renovated before renting, keep ALL receipts — your renovations create NEW Division 40 and Division 43 deductions.
  • Purchase a schedule even for older properties — building depreciation (Div 43) often still has 10-20+ years of claims remaining.
Avoid These Mistakes
  • Not getting a depreciation schedule at all — this costs investors thousands in missed deductions every year.
  • Trying to claim plant & equipment depreciation on second-hand items installed by a previous owner (post-2017 change).
  • Not claiming building depreciation on pre-1985 properties — you can't, but many investors don't realise the cutoff.
  • Forgetting to update the schedule after renovations — new items create fresh deduction claims.
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