💡 If You Own an Investment Property—You’re Likely Missing Deductions

Tax depreciation is one of the most powerful (and underused) tax strategies available to property investors. But confusion about what can actually be claimed often leads to missed opportunities—especially when investors assume their property is too old or too simple to benefit.

This guide breaks down exactly what’s claimable under a depreciation schedule, using real-world examples to bring the ATO legislation to life.

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📂 The Two Main Categories: Division 40 vs Division 43

All tax depreciation claims fall into one of two categories:

✅ Division 40 – Plant & Equipment

This covers removable or mechanical assets that decline in value over time.

Examples include:

• Air conditioners

• Carpets, blinds, and curtains

• Hot water systems

• Ceiling fans

• Ovens, dishwashers, and rangehoods

• Security systems

• Light fittings

🧠 Important Note: If you bought a second-hand residential property after 9 May 2017, you can’t claim existing Division 40 items. But you can still claim any new items you purchase or install after settlement.

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✅ Division 43 – Capital Works

This refers to the structure of the building and permanent improvements—typically depreciated over 40 years at 2.5% per year.

Examples include:

• Bricks, concrete, walls, floors, and roofing

• Built-in cupboards and wardrobes

• Bathrooms and kitchens (structural components)

• Driveways, fencing, and carports

• Extensions, renovations, and structural upgrades

• Retaining walls and concrete slabs

🧠 Even older properties can qualify for Division 43 if improvements were made after 15 September 1987—even if you didn’t complete the work yourself.

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🛠️ Real-World Example: What’s in the Schedule?

Property: 2001-built house in Brisbane
Investor: Josh, first-time landlord
Recent updates: New carpet, oven, and air conditioning in 2023

What we claimed in his depreciation schedule:

Total Year 1 Deductions: $4,450

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🧾 Do You Need a Schedule to Claim These Items?

Yes. The ATO requires a detailed depreciation schedule prepared by a qualified Quantity Surveyor (not your accountant). At TaxShield, our reports are:

• Fully ATO-compliant

• Prepared by Chartered Quantity Surveyors

• Tailored for both residential and commercial properties

• Designed to maximise every claim, backed by real cost data

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🔁 When to Review and Update Your Schedule

You should update your schedule when:

• You complete renovations or replace assets

• A tenant fit-out occurs (for commercial properties)

• You inherit or purchase a property with existing improvements

• You’re unsure if your current schedule is maximising claims

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💸 Summary: You May Be Sitting on Hidden Deductions

If you’ve never ordered a depreciation schedule—or it’s been years since your last review—there’s a good chance you’re leaving money on the table.

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👉 Ready to See What You Can Claim?

Our Investor Starter Package is just $395+GST and includes everything you need to start claiming. We also offer updates for properties that have been improved over time.

📩 Order My Depreciation Schedule