Property Depreciation Calculator
Calculate tax deductions from property depreciation including capital works and plant & equipment for Australian investment properties.
Properties built after 1985 are eligible for depreciation
Typically 60-80% of property value
Plant & Equipment Items (Estimated Values)
Depreciation Deduction Results
$16,850
Total depreciation claim
$5,476.25
At 32.5% tax rate
$47,222.5
Cumulative tax savings
Projected Depreciation Schedule (First 5 Years)
| Year | Capital Works | Plant & Equipment | Total Deduction | Tax Saving |
|---|---|---|---|---|
| Year 1 | $12,500 | $4,350 | $16,850 | $5,476.25 |
| Year 2 | $12,500 | $3,697.5 | $16,197.5 | $5,264.188 |
| Year 3 | $12,500 | $2,514.3 | $15,014.3 | $4,879.648 |
| Year 4 | $12,500 | $1,843.82 | $14,343.82 | $4,661.742 |
| Year 5 | $12,500 | $1,327.55 | $13,827.55 | $4,493.954 |
Property Eligible for Depreciation
Built in 2020, this property qualifies for both capital works deductions and plant & equipment depreciation under Australian tax law.
Important Disclaimer:
This calculator provides estimates only and should not be relied upon for tax planning purposes. The actual depreciation deductions available to you may differ significantly based on your specific circumstances.
For accurate figures and a detailed analysis, we strongly recommend contacting property depreciation professionals:
- Qualified Quantity Surveyors for professional depreciation schedules
- Tax accountants familiar with property investment
- Property depreciation specialists who can maximise your claims
A professional depreciation report typically costs $500-$700 and is tax-deductible. It often pays for itself through increased deductions in the first year alone.
Understanding Property Depreciation
What is Property Depreciation?
Property depreciation is a tax deduction that allows investment property owners to claim the decline in value of their building structure and plant & equipment items over time.
Two Types of Depreciation
- Capital Works (Division 43): Building structure depreciated at 2.5% per year over 40 years
- Plant & Equipment (Division 40): Removable items depreciated over their effective life (typically 5-10 years)
Eligibility Requirements
- Property must be income-producing (rented out)
- Building construction must have commenced after 15 September 1987
- Capital works deductions available for properties built after 1985
- Plant & equipment can be claimed regardless of construction date
Maximising Your Claims
- Get a professional depreciation schedule from a Quantity Surveyor (typically costs $500-$700)
- Claim depreciation from the date the property is first rented
- Keep records of all renovations and improvements
- Consider depreciation benefits when choosing between new and established properties
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