Are your depreciation assumptions costing your clients money?
Since the changes to depreciation in the 2017 budget, there has been a steady increase in the number of property investors overpaying tax by failing to claim significant depreciation deductions.
Why?
Because many advisors overestimated the impact of these changes. Those assumptions have frequently led to clients missing out on $1000s in tax deductions, even in the short term.
How do we know? We often get asked for a free depreciation estimate a year or two down the track and clients tell us their accountant has not been claiming depreciation.
Below you’ll see some typical depreciation deductions for a range of second-hand properties. As you can see from these depreciation estimates, worthwhile deductions are still available in older properties.
Of course, if the properties were bought brand new and leased out immediately by your client, there is significantly more depreciation available. You can find depreciation estimates for brand new properties here
We even guarantee to find a minimum 2X our fee in depreciation in just the first full year or the schedule for all properties built after 87.
Depreciation Estimates For Pre-Existing Residential Investment Properties
Construction costs increased considerably from 2020 onwards, particularly during COVID, these increases are reflected in our 2022 depreciation estimates.
Have you got clients who might be missing out on depreciation deductions? Call or email us 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.
Capital Works / Division 43 estimates only
| 3 – 4 Bedroom House | Year Built | Depreciation 1st Full Year | 5 Year Depreciation |
| Typical 3-4 Bedroom project home | 1988 | $1,400 – $1,800 | $7,000 – $9,000 |
| 1995 | $2,000 – $2,500 | $10,000 – $12,500 | |
| 2000 | $2,800 – $3,200 | $14,000 – $16,000 | |
| 2005 | $3,000 – $3,700 | $15,000 – $18,500 | |
| 2010 | $4,000 – $4,500 | $20,000 – $22,500 | |
| 2015 | $5,000 – $5,500 | $25,000 – $27,500 | |
| 2020 | $5,500 – $6,000 | $27,500 – $30,000 | |
| 2022 | $6,500 – $8,000 | $32,500 – $40,000 |
| 2 Bedroom Walkup Apartment | Year Built | Depreciation 1st Full Year | 5 Year Depreciation |
| Typical 2 Bedroom apartment in building with no lift | 1988 | $900 – $1500 | $4,500 – $7,500 |
| 1995 | $1700 – $2300 | $8,500 – $11,500 | |
| 2000 | $2200 – $2800 | $11,000 – $14,000 | |
| 2005 | $3000 – $3500 | $15,000 – $17,500 | |
| 2010 | $3500 – $4000 | $17,500 – $20,000 | |
| 2015 | $4500 – $5000 | $22,500 – $25,000 | |
| 2020 | $5000 – $5500 | $25,000 – $27,500 | |
| 2022 | $6000 – $7000 | $30,000 – $35,000 |
| 2 Bedroom Highrise Apartment | Year Built | Depreciation 1st Full Year | 5 Year Depreciation |
| Typical 2 Bedroom apartment in a medium or highrise development | 1988 | $2000 – $2500 | $10,000 – $12,500 |
| 1995 | $3000 – $3500 | $15,000 – $17,500 | |
| 2000 | $4000 – $4500 | $20,000 – $22,500 | |
| 2005 | $4500 – $5000 | $22,500 – $25,000 | |
| 2010 | $5000 – $5500 | $22,500 – $27,500 | |
| 2015 | $6000 – $6500 | $30,000 – $32,500 | |
| 2020 | $6500 – $7000 | $32,500 – $35,000 | |
| 2022 | $7000 – $8000 | $35,000 – $45,000 |
Want a hard copy for you or your staff? Building Only Depreciation Estimates Quick Guide
These figures are a guide only and the most accurate number is having the property reviewed by on of our Quantity Surveyors.
We also have estimates available for brand new investment properties. Just click here.
