Is my investment property too old to claim depreciation?


Expert Advice with Tyron Hyde - 09/12/2016

Is my investment property too old to claim depreciation?
The short answer is no, you can claim depreciation on all investment properties.

Depreciation is divided into, Building Allowance (walls, slab and roof etc) and Plant and Equipment (appliances, carpets, blinds etc.)
Building Allowance is valid if built after September 1987 (residential) and is calculated at 2.5% of the original construction costs over 40 years.

Plant and equipment items are claimed at varying rates eg under $300 at 100%, under $1000 at 37.5%, air conditioners over 10 years etc. You can also claim a portion of common area plant in strata buildings.

The important thing to remember with Pre 1987 built investment properties is that most of the plant and equipment will be depreciated after 5 years of ownership.

Depreciation starts from the settlement date, so if your investment was owner occupied anytime during this period it is important you call Washington Brown to ensure it is worthwhile for you to have a depreciation report prepared.


Tyron Hyde is the CEO of Washington Brown and is considered one of Australia’s leading experts in property tax depreciation. He is also a registered tax agent.  Washington Brown manages construction costs worth over $2 billion and completes 10,000 schedules annually. For a depreciation schedule quote CLICK HERE and follow the 3 simple steps or estimate your depreciation cost. 

The Washington Brown Free Depreciation Calculator will give you an estimate of the depreciation deductions you could claim on your investment property

Read more Expert Advice articles by Tyron
Disclaimer: while due care is taken, the viewpoints expressed by contributors do not necessarily reflect the opinions of Your Investment Property.

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