Depreciation is the reduction in value of an asset over time - and the ATO lets investors claim that decline as a deduction. If your property produces income, depreciation becomes a tool to reduce your taxable income. It’s not a loophole. It’s a standard line item in the tax code.

There are two categories:
• Capital Works (Division 43) - the structure and fixed elements of the building
• Plant and Equipment (Division 40) - the removable, mechanical or short-life items inside

Instead of guessing, a depreciation schedule professionally itemises every eligible asset, assigns the correct method, and outlines the deductions you can claim each year - often for up to 40 years.

Because it directly reduces your taxable income.

Let’s say you earn $30,000 a year in rent, and your depreciation claim is $8,000. That means you’re only taxed on $22,000 - not the full rental income. It’s a non-cash deduction, which means you don’t have to spend the money to claim it.

A good depreciation schedule can mean thousands in savings each year. It’s one of the few tax tools available to investors that doesn’t involve spending more - it’s about getting back what you’re legally entitled to.

The ATO sets the rules - and expects you to follow them.

The Tax Office allows depreciation claims on income-producing properties under Divisions 40 and 43 of the Income Tax Assessment Act. But to claim properly, you need a report prepared by a qualified Quantity Surveyor. Not an accountant. Not a chatbot. Someone who understands construction and tax law.

Untaxable schedules are built to ATO standards. Every claim is calculated against approved asset lists and effective life rulings. And if your claim is ever audited, your report will hold up - down to the decimal.

Think of it like this:
• Division 43 = the bones of the building (walls, concrete, wiring, fixed fittings)
• Division 40 = the moving parts (carpets, ovens, air conditioning, blinds, etc.)

Division 43 is slower to depreciate (2.5% per year over 40 years). Division 40 often depreciates faster - and with more flexibility in method. That’s where much of the untapped value lives.

Untaxable identifies every item in both categories and applies the correct method - so your deductions are both complete and compliant.

A depreciation schedule covers everything the ATO says you can claim. That includes:

Division 43 – Capital Works
• Foundations, brickwork, concrete slabs…
• Roofing, ceilings, internal walls…
• Built-in kitchen cupboards and bathroom fittings…
• Plumbing, wiring, tiling, waterproofing…
• Driveways, fences, balconies, sheds, garages…

Division 40 – Plant & Equipment
• Carpets, blinds, curtains, light fittings…
• Ovens, dishwashers, rangehoods, cooktops…
• Air conditioners, ceiling fans, hot water systems…
• Security systems, smoke detectors…
• Furniture (if furnished), garden equipment, even intercoms…

If it wears out over time - and earns income - it may be claimable.

Absolutely.

If you’ve added a new kitchen, replaced flooring, or updated fixtures, those costs are depreciable. You just need:
• Your renovation invoices, or
• A summary of what was done (and when)

At Untaxable, we can work with either. And if you’ve scrapped or removed old items (like carpet, ovens, etc.), we can even calculate a scrapping deduction - which lets you claim the remaining value of items no longer in use.

That’s where our dynamic schedules come in. You don’t need a new report. We just update the one you’ve already got.

Yes - as long as the renovations occurred after 1992, they’re usually deductible under Division 43.

That includes previous renovations done by a builder, former owner or even the developer. We research historical construction data, DA approvals and cost benchmarks to estimate the construction value of those improvements.

Even if you didn’t do the work, you can still legally claim it. We’ll find it, value it, and include it.

Scrapping is when you remove or replace an asset that still has unclaimed value - like an old oven or carpet.

With Untaxable, you don’t need a separate report to calculate it. Our schedules are dynamic, which means we can revise your asset list and claim the remaining value directly from the original report.

If something’s gone or replaced - let us know. We’ll help you scrap it, so the deduction doesn’t go to waste.

Yes - but with limits.

For residential properties purchased after 9 May 2017, you can’t claim depreciation on second-hand plant and equipment (Division 40) - like ovens, aircons or carpets.

You can still claim capital works (Division 43) if the building was constructed after 16 September 1987 (or substantially renovated later). That usually gives you 40 years of deductions, even if you’re not the original owner.

Yes - up to two years back for most individual tax returns.

If you forgot to claim depreciation or didn’t have a schedule, you can request an amended return through your accountant. Some commercial and company entities may have longer windows.

It’s worth checking. You might still be able to recover thousands in deductions.

Yes. If your property earns income—even for part of the year—you’re eligible to claim depreciation for that portion.

For example:
• A holiday home rented 4 months of the year? Claim 4/12ths.
• A property that was owner-occupied and then rented? The claim starts from the rental date.

Your schedule includes the full-year amount. Your accountant adjusts for the relevant rental period.

Yes. The schedule remains the same, but your share of the deductions will match your ownership percentage.

If you and a partner each own 50%, your tax claim will reflect that. We can also adjust the report formatting if needed to support co-owners or different entity structures.

Your Untaxable schedule includes:
• Year-by-year depreciation figures (up to 40 years)
• Both Diminishing Value and Prime Cost methods
• Full asset breakdowns with ATO-compliant classifications
• Excel (.xls) files for your accountant’s system
• A plain-language summary sheet

No padding. Just a report that works - for you and your accountant.

Your accountant uses it to lodge your return. But we build it so you can understand it too.

That means clear summaries, properly classified assets, and both Prime and Diminishing Value numbers - so they can choose what’s best for your tax strategy.

There are two ways to calculate depreciation:
Diminishing Value (DV)
More up front, less each year after that.
Think of it like a torch light—brightest at the start, fading over time.

Prime Cost (PC)
Same amount every year, over the life of the asset.
Think of it like slicing a pizza - equal pieces every time.

At Untaxable, we calculate both and include both—so your accountant can choose.

If it’s used or structural, it uses Prime method .
If it’s new and removable, you can choose Diminishing or Prime method.

Because in some cases, the ATO decides for you.

You must use Prime Cost for:
• All capital works (Division 43)
• Second-hand plant & equipment in residential properties purchased after 9 May 2017

Yes - and we share both.

If both are allowed, we calculate both. If only Prime is allowed, we apply it exactly as required. No guesswork. No overclaims. Just the correct method for every asset, backed by legislation and ATO guidelines.

It’s a one-off that lasts up to 40 years.

Each year, your accountant references the next deduction. If your property changes - say you renovate or replace appliances - we can update it for a flat fee.

No. The ATO only accepts depreciation schedules prepared for your ownership.

That’s because each report is tied to your purchase price and date. We can assess whether it’s worth claiming, and if so, build a fresh report based on your costs and entitlements.

No need to start over.
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When something changes - a renovation, a replacement, or a removal - we can revise your existing report quickly. No new site visit, no full rewrite, just a clean update.es.No need to start over.

When something changes - a renovation, a replacement, or a removal - we can revise your existing report quickly. No new site visit, no full rewrite, just a clean update.

Just get in touch.

Any Untaxable schedule can be updated for a flat fee of $120 + GST. Let us know what’s changed, and we’ll factor it in - backed by the same audit-ready standards as the original.

Scrapping is when an asset (like a carpet or oven) is removed before it’s fully depreciated. That leftover value becomes a deduction.

We’re the first in market to build scrapping directly into our reports. You don’t need a new schedule. Just tell us what’s changed, and we’ll update it - fast.

Yes - for the asset valuation part of the claim.

The ATO specifically recognises Quantity Surveyors as qualified to estimate construction and asset costs for depreciation purposes. Your accountant handles your return, but the numbers must come from a QS.

Liam is a fully qualified Quantity Surveyor (BAppSc. MAIQS) with over 10,000 schedules completed.

If it earns rental income, it probably does.
• Residential properties built after 1987 can claim capital works (Division 43)
• All properties with new assets can claim plant & equipment (Division 40)
• Commercial properties can generally claim both—without restrictions

If you’re unsure, we’ll qualify your property before you commit.

Usually not.

Most residential properties can be assessed using desktop tools and verified data. For complex commercial sites, an inspection may help. We’ll only recommend one if it adds value to your claim.

Yes.

The cost of preparing a depreciation schedule is 100% tax-deductible in the year it’s incurred.
Each answer is written in your approved TOV. Key Phrases are embedded, not bolted on.
No fluff. No slogans. No duplication. Just clarity.