Are you under-appreciating your depreciation?


Research shows 80% of investors don’t claim all of the deductions they are entitled to. Are you one of these?

What is depreciation?

Depreciation is like wear and tear – it’s a recognition that your buildings and assets have a finite useful life and that they lose value over time. At tax time, you can claim this wear-and-tear against your taxable income. You need to know what you can depreciate and by how much.

How do you claim?

We recommend that you have a Quantity Surveyor produce a depreciation schedule for you. This will help you plan for making depreciation deduction claims.

I have an older property. Can I still claim?

Maybe. You can claim less with an older property than a newer one, but there are probably still valid deductions you can make. If your building is less than 40 years old, you can usually claim depreciation on capital works.

It’s also worth looking into depreciation on renovations.

Our goal is to empower you to become a better, more finance-focused and well-rounded entrepreneur. Contact us at or 1300 328 855

I’ve never claimed on my property. Can I make claims for past years?

You can adjust your previous two years’ tax returns.

What method of depreciation should I use?

There are two methods to calculate depreciation:

  1. Diminishing value. Here, a percentage of the value of the asset is deducted. Each year, as the value diminishes, the deduction will also diminish.
  2. Prime costs (also known as straight line). The deductions are calculated as a percentage of the cost, giving a consistent depreciation deduction each year.

The method you select should be based on your goals the short or long-term financial strategy.

How can I use PAYG with depreciation?

Some investors use PAYG to offset their tax payments through the year.

Need more information?

Talk to one of our specialised Client Managers.

And finally…

Don’t forget to claim the costs of producing the schedule – the costs are 100% tax deductible!

You can click here to speak to a businessaccounting and bookkeeping firm. We also offer hospitality business consultation and mortgage services. We will give you a call to know more about your needs. We will explain to you how we can improve your business.

Ballarat Accountants

Phone: 1300 328 855

Office Address: 902 Howitt Street, Wendouree, Victoria 3355, Australia

Postal Address: PO Box 2234, Bakery Hill, Victoria 3354

Gisborne Accountants

Phone: 03 97444522

Sunbury Office Address: Suite 13, 33-35 Macedon Street, Sunbury, Victoria 3429, Australia

Gisborne Office Address: 45 Hamilton Street, Gisborne, Victoria 3437, Australia

Postal Address: PO Box 270 Gisborne Victoria 3437