Looking to claim? For property owners, depreciation is the gift that keeps on giving and another reason to talk with the professionals at Jim’s Building Inspections. To wit, investors deduct the amount of income-producing assets in decline over the financial year.
Naturally, expertise is recommended because estimating declines is complicated. As one Domain article highlights, Many property owners aren’t taking advantage of depreciation opportunities. Or as one tax depreciation expert put it: “Depreciation is not claimed correctly by 70 or 80 per cent of investors, so they’re leaving money on the table.”
Conclusion
Property depreciation is one of the most powerful yet often overlooked tax deductions available to Australian property investors. By understanding how building and plant depreciation work—and by engaging a qualified quantity surveyor—you can legally reduce your taxable income and improve cash flow year after year. A professionally prepared depreciation schedule ensures you don’t miss out on eligible claims and stays compliant with ATO guidelines. Ultimately, claiming depreciation correctly helps maximise your return on investment and makes property ownership significantly more tax-efficient.
FAQs
Property depreciation is the decline in value of a building and its assets over time, which can be claimed as a tax deduction.
Owners of income-producing properties, such as rental properties, can claim depreciation.
Capital works (building structure) and plant & equipment (removable assets like appliances).
Yes, a depreciation schedule prepared by a qualified quantity surveyor is recommended and accepted by the ATO.
Generally up to 40 years from the date construction was completed.
No, it’s a non-cash deduction that reduces taxable income without an out-of-pocket expense.
Yes, renovations can add new depreciable assets and increase deductions.
Only if you renovate, add assets, or dispose of existing ones.