At Herron Todd White (HTW), we help residential, commercial, and rural property owners maximise returns with detailed, ATO-compliant tax depreciation schedules. These reports are an essential tool for reducing your taxable income and increasing after-tax cash flow.
Our experienced Quantity Surveyors — who are also registered tax agents — inspect your property to identify all eligible depreciable items. Then, we prepare a customised report that ensures you’re claiming the maximum available deductions under Australian tax law.
A tax depreciation schedule outlines the deductions you can claim on an investment property over time. It covers two key areas:
These deductions apply to the structural elements of the property, such as walls, floors, and fixed improvements. If your building qualifies, you may claim up to 2.5% per year over a 40-year period, depending on when construction took place.
Plant and Equipment Depreciation
This component covers removable assets like carpet, hot water systems, blinds, and appliances. Each item is depreciated based on its effective life and condition, which our team assesses during inspection.
Together, these two components create a complete picture of your eligible depreciation, helping you make the most of your property investment.
Choosing the right team matters. At HTW, we provide:
In other words, we don’t just create depreciation reports — we help you unlock hidden value in your investment property.
If you own income-generating property, you’re likely eligible for tax depreciation benefits. That includes:
Regardless of property type, if you’re earning rental income, a tax depreciation schedule could deliver thousands in annual savings.
Once you request a quote for a tax depreciation schedule, you’ll hear from our team within one business day. We’ll send a tailored quote via email for your review and approval.
After payment is received, we’ll begin preparing your file and contact your nominated person to arrange access to the property. Following the inspection, our team will finalise your report and email it to you.
If you have questions at any stage, we encourage you to reach out to your local HTW office, we’re here to help.
Don’t miss out on valuable tax deductions. Request a quote below for your tax depreciation schedule with HTW today and let our expert team help you boost the financial performance of your property.
If you don’t have a tax depreciation schedule for your investment property, you could be missing out on thousands of dollars each year in allowable depreciation.
Herron Todd White is ideally placed to provide an independent Tax Depreciation Schedule to ensure you have all the tools to maximise your return on your investment property.
Once you submit a quote request for a tax depreciation schedule, a member of our team will email you a tailored quote within one business day.
After you approve the quote and make full payment, we’ll begin preparing your file and contact your nominated representative to arrange property access for the inspection.
Following the property inspection, your tax depreciation schedule will be prepared by our expert team and sent to you via email.
If you have any questions at any stage of the process, please contact your local HTW office, we’re here to help.
If you own an income producing property (rental property or business related) then you should obtain a tax depreciation schedule if you wish to claim depreciation allowances. Schedules are prepared by qualified Quantity Survey professionals to not only ensure that all possible deductions are identified but also that ATO governing laws and requirements are met.
To compensate taxpayers for the reduction in value of items used in the production of taxable income; assessed as building works, plant & equipment, and structural improvements.
1. Building — Capital Works (Division 43) (the bricks & mortar, this is the actual main
structure)
2. Structural Improvements (Division 43) (this refers to external works such as pool, fencing,
paving etc.)
3. Plant & Equipment (Division 40) (Typical P&E items for a residential development include carpets, curtains, air conditioners etc.)
Tax Depreciation can be claimed once a property becomes income producing, ie deriving an income from tenancy or business related income. Depreciation allowances are bound by ATO tax rulings and legislation, with specific key dates playing a significant part in the preparation of a tax depreciation schedule. Reference to the
Australian Taxation Office legislation and tax rulings for depreciation is governed by the Income Tax Assessment Act 1997.
Yes, depreciation allowances for common areas are apportioned according to unit entitlement. A full inspection of the strata complex common areas will occur in addition to your individual unit inspection. Depreciable items in common areas include but not limited to Fire Hose Reels, Fire Extinguisher, Smoke Detection & Alarm System, Hydrant Pump, Car parking, Pool/Spa Equipment, Gym Fitout and Equipment, etc.
A detailed site inspection of your property will be completed to identify all of the depreciable items. From there our Quantity Surveyor will prepare a schedule which sets out the maximum depreciation allowances for the Building, Structural Improvements and Plant & Equipment, including items such as floor coverings, kitchen appliances, hot water service etc. This information is incorporated into a full report which sets out the allowances for future years which you can then simply pass on to your accountant for preparation of your tax return.
Yes.
Our tax depreciation schedules are split into two sections:
Capital Works Allowance – Capital works are those building elements that are integral to the building structure i.e. walls, floors, roofs etc. Residential investment properties constructed after 19th July 1985 are eligible to claim 2.5% or 4% of the original construction cost depending on the date the property was constructed.
Decline in Value of Plant and Equipment – Articles of plant and equipment can be deducted at an increased rate compared to the capital works allowance. There are many items identified by the ATO which can be categorised as plant and equipment. For example carpet, curtains, whitegoods, air- conditioners etc are all considered to be plant and equipment (Note: This list is not exhaustive).
The ATO stipulates that “an appropriately qualified person” (TR 97/25) must be engaged to calculate original building costs if accurate original costs are unavailable. As Quantity Surveyors and Registered Tax Agents, HTW are appropriately qualified as outlined by the ATO to compile tax depreciation schedules.
Depreciation may be claimed on any property, either new or old. To claim depreciation allowance, the following conditions must be satisfied:
The property must be owned by the taxpayer. The property must be used for the purpose of producing assessable income, or be ready for use for that purpose.
No. All properties are entitled to some form of depreciation regardless of age.
The investment property does not have to be new: Both new and old properties will attract some depreciation deductions. All fixtures and fittings are claimable. Also, any renovation or improvement carried out after 27/2/1992 is entitled to some form of depreciation and capital works deductions respectively. You can also adjust previous year’s tax returns: When a property owner has not been claiming or maximising tax depreciation deductions, currently up to the previous two financial year’s tax returns can be adjusted and amended.
The age of the building can be determined by obtaining council documents with dates pertaining to the original application approval date or the Occupancy Certificate date, and final inspection date.
Yes. Anything in the property that is part of a previous renovation will be estimated by our quantity surveyors and depreciated accordingly. For capital improvements to qualify for the Division 43 construction write off allowance, they must be completed after 27/2/1992.
Information we require to produce a Tax Depreciation Schedule includes the following:
Yes, a depreciation report can be prepared to allow an individual to easily recover missing depreciation benefits up to a period of 4 years.
Claiming depreciation allowance offsets your total taxable income, and reduces the tax you have to pay in today’s dollars. This will “free up” your cash flow and enable you to repay your mortgage or debt in a shorter duration.
The distinction is between repairs and improvement. Improvement is dealt as capital works, whereas repairs are dealt with as a normal outgoing expense. All maintenance or repair works carried out during the leasing period need to be examined on a case by case basis by our Surveyor i.e. if the works are of repairs or improvement nature.
All figures are calculated from settlement date and you can do an adjustment up to 4 years past. So you may be able to claim up to 4 years of depreciation in this financial year.
