5 Common Questions About Tax Depreciation Schedules – Answered
Tax depreciation can be confusing… even for seasoned property investors. But understanding it can make a real difference at tax time. If you own an investment property in Australia, you may be entitled to significant deductions. The key is having a Tax Depreciation Schedule prepared by a professional. In this blog, we break down the five most frequently asked questions we get from clients about tax depreciation and how Herron Todd White can help.
1. What exactly are Tax Depreciation Schedules?
A Tax Depreciation Schedule is a report that outlines how much you can claim each year in tax deductions for the wear and tear of your investment property. It includes both structural elements (capital works) and removable items (plant and equipment).
This schedule is used by your accountant to apply annual depreciation deductions to your taxable income, potentially saving you thousands.
2. Do older properties qualify for depreciation?
Yes, although the rules differ. While newer properties generally offer more deductions, older homes can still be eligible, especially if they’ve been renovated.
For properties built after 1987, you can claim capital works deductions. For properties with improvements made after 1992, you may be able to claim deductions on those upgrades as well.
Even if the building is too old to qualify, new appliances or renovations may still provide plant and equipment deductions.
3. I bought an established investment property. Can I still claim anything?
Absolutely. Since 2017, investors who buy second-hand residential properties can no longer claim depreciation on existing plant and equipment. However, you can still:
- Claim capital works deductions (Division 43)
- Claim depreciation on any new assets you install after settlement
It’s also worth getting a depreciation schedule even if the property seems older, you might be surprised at what’s eligible.
4. How much does a depreciation schedule typically save me?
It depends on the age, condition, and type of property, but some investors can claim thousands in the first year alone. Over the life of the property, it could amount to tens of thousands in deductions.
The cost of the schedule itself is also tax-deductible.
5. Why choose Herron Todd White?
HTW is one of the few valuation firms in Australia with the experience and reach to service 100% of postcodes. Our tax depreciation schedules are:
- Fully ATO-compliant
- Prepared by experienced valuers and quantity surveyors
- Delivered with insights that help you maximise deductions and stay audit-ready
We make the process easy—no guesswork, no unnecessary delays.
If you’re investing in property and not claiming depreciation, you could be leaving money on the table. A Tax Depreciation Schedule helps ensure you’re not overpaying tax and gives you more to reinvest.
Ready to unlock more value from your investment? Contact Herron Todd White today.
And if your circumstances have changed, such as selling, renovating, or transferring your property, ask us about our valuation services too.
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