Depreciation Schedule Estimator
CalculatorEstimate property depreciation deductions for your investment property. Covers both capital works (Division 43) and plant & equipment (Division 40).
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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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
How to Use
- 1Enter the property purchase price.
- 2Add construction cost if known (for more accurate Division 43 estimates).
- 3Enter the year the property was built.
- 4Select property type and current condition.
- 5Indicate any recent renovations you've done.
- 6See 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.
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