If you own an investment property, you’re probably always looking for ways to reduce costs and improve your returns. While most investors are familiar with common deductions like loan interest and property management fees, many overlook one of the most powerful tax-saving tools available—a Tax Depreciation Schedule. This simple yet effective document can help you reduce your taxable income, keep more money in your pocket, and improve your property’s profitability.

What is a Tax Depreciation Schedule?

A Tax Depreciation Schedule is a detailed report that outlines the amount of depreciation you can claim on your investment property each year. As a building and its fixtures age, they naturally lose value. The Australian Tax Office (ATO) allows investors to claim this decline in value as a tax deduction. A Tax Depreciation Schedule helps you calculate these deductions accurately so you can maximize your tax savings.

How Does Property Depreciation Work?

Depreciation is divided into two categories:

1. Capital Works (Division 43)

• Covers the structural elements of the property, including walls, floors, roofs, plumbing, and electrical wiring.
• Available for properties built after July 18, 1985, with deductions claimable for up to 40 years.

2. Plant and Equipment (Division 40)

• Applies to removable assets such as carpets, air conditioning units, appliances, blinds, and hot water systems.
• Each asset has an effective life determined by the ATO, which affects how quickly it depreciates.

Who Should Get a Tax Depreciation Schedule?

If you own an investment property, chances are you qualify for depreciation deductions. A Tax Depreciation Schedule is beneficial for:

✅ Property Investors – Whether you own residential or commercial properties, depreciation can significantly reduce your tax bill.

✅ Landlords with Renovated Properties – Even if your property is older, renovations or upgrades may still be eligible for deductions.

✅ Business Owners Leasing a Property – If you've installed fit-outs such as shelving, office furniture, or security systems, you may be able to claim depreciation on those assets.

Why a Tax Depreciation Schedule is Worth It

✔️ Bigger Tax Deductions – Claiming depreciation can save you thousands of dollars in taxes each year.

✔️ Better Cash Flow – More deductions mean you keep more rental income in your pocket.

✔️ One Report Lasts Decades – A Tax Depreciation Schedule is a one-time investment that provides deductions for up to 40 years.

✔️ ATO Compliance – Ensures your depreciation claims are accurate and legal, reducing the risk of errors or audits.

How to Get a Tax Depreciation Schedule

To claim the maximum deductions, you’ll need a Tax Depreciation Schedule prepared by a licensed quantity surveyor. They’ll inspect your property, calculate eligible deductions, and provide an ATO-compliant report tailored to your investment.

Start Saving Today!

If you haven’t looked into tax depreciation, now is the time. A Tax Depreciation Schedule can unlock hidden savings and improve your property’s profitability. Reach out to a qualified quantity surveyor and take full advantage of the deductions available to you!