And How Much It Can Save Property Investors
When you purchase an investment property, you’re not just buying a home — you’re buying a long list of assets that naturally wear out over time. The ATO allows you to claim this wear and tear as depreciation, but to unlock the full benefit, you need a professionally prepared depreciation report.
For many investors, this becomes one of the most valuable documents they’ll ever obtain.
What Is a Depreciation Report?
A depreciation report (also known as a tax depreciation schedule) is a detailed assessment prepared by a qualified quantity surveyor. It outlines:
- Division 43: Building depreciation
- Division 40: Plant and equipment items
- A full 40‑year schedule of deductions
- A year‑by‑year breakdown for your accountant
It’s a once‑off report that can be used every tax time for the life of the property.
How Much Can a Depreciation Report Save You?
The savings can be significant — often far more than investors expect.
Typical savings for Australian investors
- $5,000–$15,000 in the first full year for newer properties
- $20,000–$40,000+ over the first five years
- Tens of thousands over the life of the investment
Even older properties can still qualify for meaningful building depreciation and renovation deductions.
A simple example
If an investor claims $10,000 in depreciation in a year and is on a 37% tax rate, that’s:
$10,000 × 37% = $3,700 back in their pocket — every single year.
That’s real cash flow, not just a paper deduction.
Why Every Investor Should Have a Depreciation Report
- It maximises your tax return
Most investors under‑claim without a schedule — or don’t claim at all.
- It boosts cash flow
More deductions mean more money in your pocket to offset rising interest rates and holding costs.
- It’s ATO‑compliant
Quantity surveyors are one of the few professionals recognised by the ATO to estimate construction costs.
- It’s a once‑off cost
A good report lasts up to 40 years and can be reused every tax time.
- It helps your accountant
Your accountant simply plugs the figures into your return — no guesswork, no risk.
Do Older Properties Still Qualify?
Yes — and this is where many investors miss out.
Even if the property is decades old, you may still be eligible for:
- Remaining building depreciation
- Renovations completed by previous owners
- Capital works you’ve completed yourself
A quantity surveyor can identify deductions you may not even know exist.
How I Help My Investor Clients
As part of my investment lending service, I help clients:
- Understand what depreciation they may be eligible for
- Estimate potential tax savings
- Connect with trusted, ATO‑recognised quantity surveyors
- Integrate depreciation into their cash‑flow planning
- Structure their loan to maximise after‑tax outcomes
A depreciation report is one of the simplest, highest‑value steps an investor can take — and I make the process easy from start to finish.
Final Thoughts
If you own an investment property, a depreciation report isn’t optional — it’s essential. The savings can be substantial, the process is straightforward, and the long‑term cash‑flow benefits can be game‑changing.
If you’d like help arranging a depreciation report or want to understand how much you could save, I’m here to guide you.