Depreciation Estimator
Estimate how much you could claim in depreciation deductions on your Australian investment property. Covers both Division 43 (capital works) and Division 40 (plant & equipment).
How Property Depreciation Works in Australia
The ATO allows you to claim deductions for the wear and tear on your investment property. There are two types: Division 43 for the building structure, and Division 40 for plant and equipment (fixtures, fittings, and appliances). Together, these deductions can significantly reduce your taxable income and improve your after-tax cash flow.
Division 43 — Capital Works Deductions
Capital works deductions cover the cost of constructing the building itself — walls, floors, roof, fixed cupboards, sinks, and other structural elements. The deduction rate is 2.5% per year for 40 years, starting from the date construction was completed. Only properties built after 16 September 1987 are eligible. The deduction is based on the original construction cost of the building, not the purchase price you paid.
Division 40 — Plant & Equipment
Plant and equipment covers removable or mechanical items inside the property — carpet, blinds, hot water systems, air conditioning units, stoves, dishwashers, and light fittings. Each item has its own effective life and is depreciated individually using either the diminishing value or prime cost method. For properties purchased after 9 May 2017, you can only claim Division 40 deductions on items that you install as the current owner. Items installed by a previous owner in an established property are no longer claimable. New and off-the-plan properties are not affected by this restriction.
Should I Get a Depreciation Schedule?
A professional quantity surveyor inspects your property and identifies every claimable item, producing a detailed report that covers 40 years of deductions. The typical cost is $600–$800, and it usually pays for itself many times over in the first year alone. The ATO requires a depreciation schedule prepared by a qualified quantity surveyor to support your claims. If you own an investment property built after 1987 and you don't have a depreciation schedule, you are almost certainly leaving money on the table.
Track Depreciation Automatically with PropBoss
PropBoss automatically tracks your depreciation deductions with ATO-compliant schedules built in. No more spreadsheets — see your Division 40 and Division 43 claims across your entire portfolio in one place.