Get Maximum Depreciation With A Brand New Investment Property
New investment properties are treated favorably by the ATO. Depreciation can be claimed on the structural elements and the fixtures and fittings/assets. With pre-existing properties the assets cannot be Depreciated,
Depreciation Estimates For New Investment Properties
For a property to be considered new for tax purposes it must be brand new at the time it became an investment for the current owner. If it was a primary place of residence for the current owner before becoming an investment it is no longer considered ‘new’.
There is also a 6-month grace period from the date of completion where the property is still considered new. This is common when buying a completed property from a developer.
If the current owner’s tenants were not the first people to live in the property the property is deemed secondhand. Depreciation estimates for secondhand properties can be found here.
Have you got clients who might be missing out on depreciation deductions? Call us on 1300 660033 or email affiliates@depreciator.com.au today with the address of the property for a free and no-obligation assessment so you have some good news next time you speak to your client.
Depreciation Estimates Include Capital Works & Assets
All figures are for buildings constructed in 2022, construction costs do vary year to year, generally increasing in latter years.
| 3 – 4 Bedroom House | Construction Cost (excluding land) | Depreciation 1st Full Year | 5 Year Depreciation |
| Typical 3-4 Bedroom project home | $200,000 | $8,100 | $38,800 |
| $250,000 | $10,250 | $47,750 | |
| 300,000 | $11,850 | $57,800 | |
| $350,000 | $13,700 | $65,400 | |
| $400,000 | $15,700 | $72,700 | |
| $450,000 | $17,500 | $80,800 | |
| $500,000 | $20,200 | $91,000 |
| 2- 3 Bedroom Townhouse | Build Quality | Depreciation 1st Full Year | 5 Year Depreciation |
| Typical 2 Bedroom townhouse with minimal common property | Average | $8,750 | $39,000 |
| High Quality | $12,600 | $56,500 | |
| Luxury Architect Designed | $15,200 | $69,250 |
| 2 Bedroom Walkup Apartment | Build Quality | Depreciation 1st Full Year | 5 Year Depreciation |
| Typical 2 Bedroom apartment in building with no lift | Average | $9,450 | $37,900 |
| High Quality | $11,350 | $54,500 | |
| Luxury Architect Designed | $14,000 | $55,350 |
| 2 Bedroom Highrise Apartment | Build Quality | Depreciation 1st Full Year | 5 Year Depreciation |
| Typical 2 Bedroom apartment in a medium or highrise development | Average | $11,000 | $43,300 |
| High Quality | $15,150 | $60,000 | |
| Luxury Architect Designed | $20,000 | $76,400 |
Want a printable copy? New Build Depreciation Estimates Quick Guide
Did someone like in the property before the current landlord’s tenants? Click here for our depreciation estimates for secondhand properties.
These figures are a guide only and the most accurate number is having the property reviewed by on of our Quantity Surveyors
