If you own an investment property in Australia, tax depreciation could save you thousands each year – yet many investors miss out simply because they don’t know what to claim.

What Is Tax Depreciation?

Depreciation is the natural wear and tear on a property and its assets. The ATO allows investors to claim this as a tax deduction, reducing your taxable income and increasing your cash flow.

There are two main types:

• Capital works: The building’s structure (e.g. walls, floors, roof)
• Plant and equipment: Removable items (e.g. carpets, appliances, blinds)

Why You Need a Quantity Surveyor

Accountants aren’t allowed to estimate construction costs for depreciation purposes – that’s where a quantity surveyor comes in. They’re qualified to assess your property and prepare a depreciation schedule, outlining the deductions you can claim each year. Accountants then use this schedule to help ensure you’re claiming everything that you are entitled to.

What Can Be Claimed?

• New properties generally offer the highest deductions, including both building and asset depreciation
• Older properties can still offer deductions, particularly if they’ve been rennovated
• Residential vs Commercial: Commercial properties often have more generous depreciation rules, even on older assets

Get the Right Advice

Depreciation is one of the most effective ways to boost your investment returns. By working with your accountant and a qualified quantity surveyor, you can make sure nothing is left unclaimed.