June 2026

Well, that Budget caused a bit of a splash. Our inbox, like yours no doubt, has been flooded with commentary about the changes to the rules around property.

Economists, accountants, planners, property marketers, even providers of Depreciation Schedules, have all had their say.

And owners of properties bought before that fateful night in May have clutched to their chests their golden goose and quietly snuck away. 

Now that the excitement has died down, we can take a sober look at things. 

For you and your clients, a Depreciation Schedule just became more important. Yes, you would expect us to say that, but it will help in many cases with that valuation line in the sand that needs to be drawn in July next year.

Capturing the cost of renovations especially will be critical when it comes to vals (and we’ll be ready for you with a valuation plan when it is needed).

Did you know we already do letters for accountants and their clients with tricky CGT issues where a cost base needs to be established?

And of course, we have always done free updates of our Depreciation Schedules. 

Do you have a client who you think might need a Depreciation Schedule? Make an enquiry using your booking link and we’ll be in touch with your client to get the ball rolling.

Key Points

1. 1. Depreciation Schedules are more important than ever. Clients with investment properties will need them to help identify and cost any improvements pre July 1, 2027 to help offset capital gains.
2. 2. Your clients may need to estimate the cost of improvements to their property over time, but may not need a Depreciation Schedule. We can help with our CGT Letters.
3. 3. We provide clients with Free Updates to their Schedules if they can tell us what they added, when they added it and how much it cost.
4. 4. We’re proud of our 5-Star Reviews from our clients – and yours! Our client Jon posted a lovely review last week that demonstrates the care we take with all our clients.

Why Depreciation Schedules are more important than ever

On the Wednesday after the Budget, we were getting calls and emails from existing clients asking whether their Depreciation Schedules would help with the CGT changes announced the night before.

You probably avoided the phone for a few days.

It was our busiest post budget week since those changes to depreciation in 2017. And like that time, the anxiety was a bit overblown.

A Depreciation Schedule has always been a useful part of the CGT puzzle, so no change there. 

They have also always been a useful part of the property valuation process. Arguably, Depreciation Schedules will become even more useful now given the different treatment of capital gains accrued pre vs post 1 July 27. If a historical valuation is made some time down the track, identifying and costing pre July 1, 2027 improvements might help soften the CGT blow.

We have many clients renting out properties that were originally their homes. Sometimes those homes were bought a long time ago – that purchase price is of course the first piece in the cost base puzzle. 

Those homes have often been improved either before they became a rental, or after. And those improvements also form an important part of the cost base. Renovations are captured in a Depreciation Schedule – well, they are captured in ours.

Then there are scenarios where an owner bought a block of land and did an owner builder job and lived in the resulting home for a long time before renting it out. The cost of that house was never captured. We often help out there.

The most important thing always is to have an up to date Depreciation Schedule that captures when changes were made. Properties change, so Depreciation Schedules need to also – we’ll talk about our free update service below.

Estimating historical cost of improvements with a CGT letter

We have always helped accountants out with what we call ‘CGT letters’. We expect that service to be called on more next year.

Estimating the historical cost of improvements is part of what we do to put together a Depreciation Schedule, but sometimes a Depreciation Schedule is not what is needed.

A typical scenario is where somebody bought a block of land on the coast a long time ago and built a modest holiday house for themselves.

Then along came children and that modest house needed to grow. Perhaps it had a second storey added, or a rumpus room and extra bathroom. A garage for sure to house the water toys. 

Inevitably, there came a time when those kids stopped wanting to holiday with mum and dad and the lure of summer rent could not be ignored, so that house was put onto the rental market.

Their accountant probably flagged at the time that there would likely be CGT implications down the track, but the prospect of peak season rent can make people hear selectively.

Their hearing is a little sharper when a CGT event gets crystallised.

And that’s when we get the call. It’s not hard for our Quantity Surveyors to estimate the cost of improvements over time – sometimes a long time. And often many improvements. 

We produce a letter in these scenarios because a Depreciation Schedule is never needed. And next year, we’ll expand on this offering.

Free updates

Our free Depreciation Schedule update  is another service Depreciator has always offered.

And from next year, it will become even more important.

Lots of clients, some of them possibly yours, get in touch with us late in the financial year to tell us what they have done to their property over the last 12 months.

We have those conversations you don’t have time for.

We’ll quiz them on the nature and timing of the work they have done and then suggest what things their accountant might be able to expense. We don’t give advice, just opinions. But we are yet to have an accountant disagree.

Any improvements or new Assets that need to be depreciated, we will add to the existing Depreciation Schedule and send a fresh copy to the client ands their accountant.

And we do all this free of charge. You can read more about this service here. 

Our recent 5-Star Google Review

We don’t like to blow our own horn, but a Free Update prompted this recent Google review from our long term client, Jon:

“Depreciator has been great for managing my investment property’s tax depreciation over the past 16 years. From the very beginning, their service was professional, thorough and great value for money. They provided a detailed and accurate depreciation schedule shortly after I completed construction, and what truly sets them apart is their ongoing support.

I’ve made several improvements to the property over the years, and each time, updating the schedule has been quick, seamless, and—remarkably—free of charge. Their team is responsive and efficient, making it easy to keep my depreciation claims current without any hassle.

Knowing that I’m maximising my deductions every year, thanks to their expertise and customer-focused approach, gives me real peace of mind. I highly recommend Depreciator to any property investor looking for a reliable, knowledgeable, and cost-effective solution. “

Enquire now for a property-specific assessment

Has this article reminded you about a client’s investment property? Residential properties, commercial properties, even farms, we do them all.

If you want us to talk to a client about a Depreciation Schedule, make a no-obligation enquiry and rely on our 20-plus years of experience in estimating depreciation returns.