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 | |
| $600,000 | $23,000 | $115,000 |
| 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
Some older properties (built before 1988) that are completely unrenovated or unimproved will have no or minimal depreciation available, but … most properties of that age have had some work done and that work may mean substantial depreciation can be claimed. You should always ask us to evaluate every property; it’s FREE so why wouldn’t you?
We will check for renovations and improvements that may not be obvious to the untrained eye. Don’t risk missing out on what may be a substantial claim.
You can find out more about the typical depreciation expected on a range of older properties here: https://depreciator.com.au/why-depreciator/affiliates/typical-residential-depreciation-deductions/
We guarantee the returns of your Depreciation Schedule so there’s no risk to you. Even better, if it’s not worthwhile having a Depreciation Schedule done we’ll tell you within a few minutes and advise against having one prepared.
2X Depreciation Guarantee for All Existing Investment Properties
For residential properties built after September 1987, if we can’t get you twice our fee in deductions in the first full year, your Schedule is FREE.
Unique 10X Depreciation Guarantee For Brand-New Investment Properties
For residential properties where your tenants are the first people to live there, if we can’t get you 10 times our fee in deductions in the first full year, your Schedule is FREE.
Read more about the Depreciator Guarantees here: https://depreciator.com.au/depreciator-guarantee
Sometimes also called a Tax Depreciation Report or just a Depreciation Schedule, a Tax Depreciation Schedule is a document that shows your accountant the tax deduction they can claim for depreciation each year in your tax return.
Depreciation on your investment property is just compensation for wear and tear. Buildings wear out. So do stoves, carpet, etc – especially with tenants. So you get to depreciate them, or write them down, a bit every year. The amount of depreciation you can claim typically needs to be established by a Quantity Surveyor.
Without a Depreciation Schedule, your accountant will not know how much depreciation can be claimed on your property.
It is often the largest claimable tax deduction for rental properties.
It depends. Don’t you hate that answer? How much a Tax Depreciation Schedule costs depends on the location, age of the property, and the amount of information you have on the property. Sometimes it may not be worth you paying somebody to inspect. We have a solution for those cases. In a quick phone call 1300 660033, the team at Depreciator can work out the best way to tackle your job and give you a price. You can also lodge an obligation free enquiry here.
There are three easy ways to get your Tax Depreciation Schedule with Depreciator:
- Order your Depreciation Schedule online
- Schedule a call with one of our Depreciation Schedule Specialists
- Call our team on 1300 66 00 33
