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Depreciation on Older Properties Post 2017 Federal Budget

Depreciation for older Properties

Depreciation  Schedules for older properties revisited

 With the new rules from May 2017, can we still claim depreciation for these properties? 

The answer to some extent is yes and no.

The Australian Federal Government introduced The Treasury Laws Amendment ( housing tax Integrity )Bill 2017 introduced from 7: 30 pm May 2017 and as a result the following rules now apply:

Plant and equipment items formally claimable under division 40 can no longer be claimed if they have been previously used, however, if you buy a new dishwasher from a retailer and install it you can claim that particular item. If you were to take your old dishwasher from home and install it in your rental property, then you cannot claim a deduction for it as it is ‘previously used’.  This applies to all plant and equipment items which are things like appliances, heating & cooling, hot water, removable floor coverings, window furnishings and the like.

Capital Works Expenditure

Capital works items can still claim in relation to previously used properties.  These items are defined under div 43.

These items relate to anything constructed since July 1985 either by you, or a previous owner and and can be deducted at 2.5%per annum over a period of 40 years from the date of construction,  of the original building or the date of the relevant Improvement or extension to the original building.

Improvements can loosely be described as the ‘shell’ of the building and include things such as kitchen upgrades bathroom upgrades new roof plumbing roof restoration rewiring, re-stumping building additions  and many many more items including painting. it could include external items such as sheds fencing pavements and the like.

This is where our expert quantity surveyors at MTD have particular specialist experience over 4 decades in determining what items have been done since the original construction and additionally in white decade they have been done.

Apartments with Common Areas

Pre-existing  or previously used apartments that are part of a complex having common facilities and common areas that are subject to an owners corporation, have an advantage in that div 40 plant and equipment items included within these areas can still be claimed.

These items include things such as lifts, security, fire protection items, automatic door operators, emergency egress to name but a few.


In summary although there are some items that can no longer be deducted in relation to older or previously used properties, however there are still many thousands of dollars that can be claimed by way of having a specialist Quantity Surveyor assess your investment property.

Property investors with older previously used properties would still be well advised to include a properly prepared tax depreciation schedule in their tax returns so as to claim the benefits that are still available.


Tax Return Time & Depreciation Schedules

Get your Tax Depreciation Schedule now that it's tax time
June 30 has come and gone and a Tax Depreciation Schedule for your investment property is a must have! when finalising your returns.

Depreciation Schedule Benefits

Claiming depreciation on your investment property will enable you to save thousands from your taxable income.

Even with the new legislation, from May 17th 2017 there are still thousands of dollars to claim on existing residential properties under Div 43 Capital Allowances.

These deductions can be claimed for 40 years from the date of construction in relation to any capital works undertaken since July 1985, either by you or a previous owner.

You may have installed new appliances, carpets or blinds. to your older investment property.  These can all be claimed under Div 40.

If you have neglected to claim deductions in previous years, the good new is that you can go back and amend the previous two years to claim missed deductions.

Property Improvements

Not sure, of what may have been done by way of improvements by previous owners?

Our expert quantity surveyors that visit your property have many years experience in both residential and commercial building.

We are able to identify what improvements have been made and when, which enables you to claim the maximum deductions possible

Our Fees

100 percent of our fee for preparing the depreciation schedule can also be claimed against your taxable income in the year of expenditure.

If you have not already done so contact us or us the button below to obtain a fast quote.