Property Depreciation

No. Quanto’s Tax Depreciation Schedules last for 40 years from your settlement date. The only reason you would need an updated report is if there is a change of ownership or if any renovations have been carried out.

Contact Quanto to find out if you need to update your report.

A Tax Depreciation Schedule summarises the total amount of building costs that qualify for depreciation. This is then broken up into two areas: Capital Works (Division 43) and Plant & Equipment (Division 40).

Plant & Equipment items/assets refer to removable items with a shorter useful life than the building. Because of this, they can be written off, or depreciated over a much shorter period than Capital Works. Plant & Equipment assets in residential property include items such as:

  • Carpet
  • Window Blinds
  • Appliances
  • Air-conditioning units
  • Solar Panels
  • Ceiling Fans
  • Hot Water Systems

The cost of each item is usually estimated by Quanto as qualified Quantity Surveyors unless the actual cost is known. Each item is given an effective life by the ATO that determines the rate at which it is depreciated per year.

The list of Plant & Equipment categories issued by the ATO changes every year and includes categories such as Residential Property, Agriculture, Health Care, Retail, Accommodation and Food Services just to name a few.

A full list of these categories can be found on the ATO website, or contact Quanto today and we can email you a PDF copy of the full list.

The ATO recognise Quantity Surveyors as the qualified professionals to assess building costs to be used for depreciation. While an accountant is an expert in taxation, they are not qualified to estimate building costs. Tax Ruling 97/25 of the ITA (1997) specifically states that “valuers, real estate agents, accountants and solicitors generally have neither the relevant qualifications nor experience to make such an estimate.”

Tax Depreciation is a specialised field, and Quanto are experts in this field. Quanto use our vast knowledge of constantly changing construction costs and tax legislation to ensure our clients are receiving the correct advice and tax benefits that they are entitled to.