About the Property Depreciation Calculator
Investment property owners in Australia can claim depreciation on the building's structure (capital works) and on plant & equipment items (carpet, appliances, blinds, etc.) as a tax deduction. This gives a simplified, prime-cost estimate of both, to get a rough sense of what a depreciation schedule might be worth before commissioning one.
How it works
Capital works (Division 43) depreciates the building's construction cost at a flat 2.5% per year over 40 years, for residential buildings where construction started after 15 September 1987. Plant & equipment (Division 40) items are depreciated using the prime-cost method — their value divided evenly by their effective life. The two are added together for an estimated first-year deduction.
Assumptions and behaviour
- Assumes the building qualifies for Division 43 (construction started after 15 September 1987) — older buildings generally don't.
- Uses the prime-cost (straight-line) method for both components, which spreads the deduction evenly — the alternative diminishing-value method claims more upfront and less later, and isn't modelled here.
- Plant & equipment depreciation for items acquired second-hand in a residential property may have restrictions (post-2017 rule changes) not accounted for here.
Limitations
- This is a simplified planning estimate, not a substitute for a professional tax depreciation schedule from a qualified quantity surveyor, which itemises every eligible asset individually.
- Doesn't model the diminishing value method, which many owners actually use for plant & equipment.
- Tax deductibility depends on your specific circumstances — speak to a tax agent.
Privacy
The calculation runs entirely in your browser. Nothing is uploaded or stored.
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