Tax Depreciation Schedules
to maxmise your investment
property tax deductions

A rental property tax depreciation schedule is a report that clearly calculates and details the tax deductions a property investor can claim for the annual depreciation of their investment property (building and assets, not land).

Across the investment property community, a depreciation schedule can also be known as:

Capital Allowance and Tax Depreciation Schedule; or

Quantity Surveyors Report; or

Rental Property Depreciation Report

Investors who use an accountant will simply provide the tax depreciation schedule to their accountant so that the deductions can be applied in when completing their tax return.

For investors who complete their own tax return, “capital allowance” refers to Division 43 deductions, “plant and equipment” relates to Division 40 deductions. These deductions will be itemised in your depreciation schedule. Your schedule should detail the deductions claimable for each year. Each year you can only claim that years deductions. You will need to select between using the diminishing value or prime-cost method. Once selected and applied in one year you must use the same method each year. For detailed information you should access the ATO website.

Individuals can create their own depreciation schedules using known costs and ATO prescribed effective lives for depreciation rates, and by selecting the diminishing value or prime-cost method of depreciation.

Only quantity surveyors are qualified to professionally estimate both construction costs and asset values for the purpose of depreciation.

To ensure all construction costs (including renovations and extensions, even by previous owners) and all assets are depreciated accurately, and to maximum effect using additional methods like low-value pooling, we recommend engaging the services of a quantity surveyor.

Rental property depreciation schedules assist investors to claim the maximum tax deductions available for the annual depreciation of their investment property (referred to as capital allowance and depreciation by the ATO). Annual deductions are typically in the thousands of dollars every year, for up to 40 years.

Specifically, a property depreciation schedule will:

• ensure that your claims for capital allowance (Division 43) and plant and equipment assets (Division 40) are claimed in accordance with ATO legislation;
• save you time and effort in trying to calculate these deductions for yourself;
• save you money with your accountant, as they simply apply the results from the schedule;
• ensure that your deductions are maximised to create the greatest cash flow result for your investment.

Tax depreciation schedules work by recording all of the deductions claimable for depreciation of a rental property over its effective life. Those reported deductions are then included in your reported deductions for tax purposes, in the same way you might deduct interest repayments and landlord insurance. The deductions reduce your taxable income and therefore reduce any residual tax payable to the ATO, or increase your tax return.

Quantity Surveyors are one of the few professions recognised by the ATO to estimate historical and current construction costs, as well value the included assets. To purchase a depreciation schedule simply contact a quantity surveyor for a quote.

Once you select your provider, a rental depreciation schedule can usually be purchased quite simply over the phone or online. Good quantity surveyors like Capital Claims Tax Depreciation will assess your property online first to ensure value for you, undertake all the necessary property searches, arrange the inspection via your property manager and tenant and complete a thorough inspection. Inspections may not be necessary for brand new buildings where plans and inclusions are provided.

A quality depreciation schedule from a reputable quantity surveyor should last up to 40 years, depending on the remaining effective life of the property, or until major capital improvements are undertaken.

The cost of a Capital Claims Tax Depreciation Schedule for a standard residential property typically ranges from $440 to $715, depending on the scope of work required.

While some competitors may offer lower-priced reports, the difference in quality and outcomes can be significant. Fortunately, the price gap is minimal—especially when you consider that the full cost is 100% tax deductible.

Cheaper reports often come with hidden costs. You may be required to inspect the property yourself and supply extensive details—an inconvenient and potentially costly process. These reports frequently overlook key opportunities such as previous renovations, capital improvements, and low-cost or low-value pooling, which can dramatically enhance your claim.

Choosing a high-quality schedule ensures accuracy, compliance, and maximum deductions—without the hassle.

Market fees for depreciation schedules can range from a few hundred dollars to over $700.

Our fee will depend on the property – commercial or , and whether the property is brand new or established, and how much information is available.

Get a quote for a residential depreciation schedule here.

Commercial fees are quoted based on the building and scope of works.

Get a quote for a commercial depreciation schedule here.

We identify thousands of dollars of deductions in every property we assess. Most properties we assess report tens of thousands of dollars of deductions over their effective life. If you are unsure if a depreciation schedule is worthwhile for your property please call our team for a free chat and estimate.

• Ensure your Quantity Surveyor is a registered Tax Agent – registered with the Tax Practitioners Board of Australia;
• Use a specialist provider – not all quantity surveyors are also tax depreciation specialists. A specialist knows not only construction costing but tax legislation as well;
• Ensure your report includes the features listed above;
• Check out your provider so you can feel more confident they will still be around in a few years in the case of an audit or lost schedule.

It is a great idea to request a sample report and ensure your report is easy to read and understand – or your accountant may have to re-work the results at your cost!

A Capital Claims Tax Depreciation Schedule meets all of the above and more! We also offer:

• a free desk-top feasibility assessment of your property first;
• free updates for installation of new assets;
• .csv files for no extra charge;
• split reports for multiple owners;
• printed copies when requested for no extra charge.

We believe we represent the best quality and best value rental depreciation reports in the industry across Australia.

Accountants are not qualified to estimate construction costs, which encompass more than just materials and construction labour. For instance, they are not qualified to estimate the construction works and associated costs with previous works throughout the property’s lifespan. Our research indicates that accountants who do not utilise a professionally prepared tax depreciation schedule tend to be more conservative in their depreciation claims, resulting in potential deductions worth thousands of dollars being lost for the investor. To maximise your depreciation claim, it is recommended to have a depreciation schedule prepared by a qualified quantity surveyor.

Accountants love our depreciation schedules

Capital Claims’ knowledge and applied experience has assisted many of our clients improve their after tax position. Whilst we have found the Capital Claims team to have a detailed approach to preparing depreciation reports; we have also found their ability to look at the whole picture allows us to assist our clients with their property portfolios and wealth creation. – Paul Siderovski, SiDCOR

As an Accountant I found Capital Claims professional, priced well and very efficient. Their depreciation reports are first class. My clients are also happy with the service and reports. – Michael O’Hehir RSM Bird Cameron

Mark and the team have outstanding customer service standards and are very responsive on all matters. Importantly, the Capital Claims team have been able to deliver great results for our clients, which makes us look good. We have had numerous occasions where the expertise from Mark and the team has delivered thousands of dollars worth of tax refunds on properties for clients whom had previously been advised there was no point in having a depreciation schedule prepared. – Warwick Jackson, Fox Group Chartered Accountants