Year-one depreciation on any Australian rental.

Capital works (Div 43) plus plant & equipment (Div 40) — modelled with the post-May-2017 second-hand-residential rule changes baked in. Get a magnitude estimate before you commission a quantity surveyor.

Frequently asked questions

What's the difference between Div 40 and Div 43?

Div 43 is the BUILDING — bricks, slabs, roof, fixed walls. It's depreciated at 2.5% straight-line over 40 years from the date of original construction (not your purchase date). Div 40 is the PLANT — anything removable that wears out: carpets, blinds, dishwasher, A/C unit, hot water system, light fittings. Plant depreciates faster (typically 10-30% per year, diminishing value) and uses individual effective lives per asset.

Can I claim Div 43 on an old house?

Only if it was BUILT after 17 September 1987. Pre-1987 buildings are too old for the construction-cost deduction. However, post-1987 RENOVATIONS to an older property ARE deductible — a 2010 kitchen reno on a 1965 house gives you 30 years of Div 43 on the renovation cost. A quantity surveyor can identify renovations even if you didn't pay for them yourself.

Why does the calculator ask if the property is new vs second-hand?

The May 2017 federal budget removed Div 40 (plant) deductions for SECOND-HAND residential properties acquired by investors after that date. New builds keep the deduction in full. If you're buying an existing rental, you can only depreciate plant you BRING IN yourself (a brand-new dishwasher you install) — not the existing carpets/curtains/appliances. This is a major shift that broke a lot of older calculators; we model it with a toggle so you get the right answer either way.

How much does a quantity surveyor report cost vs save?

$600-$900 for a residential schedule, fully tax-deductible itself. For a typical $750k investment property (post-1987 build), Year-1 depreciation is often $8-15k. At a 32% MTR + Medicare, that's $2,560-$4,800 of tax saving in year one alone — paying for the report 3-7× over. Even older properties (pre-1987, no Div 43) can get $2-5k of Div 40 deductions on plant. Worth getting one for any property worth >$400k.

Is the calculator output the same as a quantity surveyor schedule?

No — this is a high-level estimate using portfolio averages. A QS report itemises every asset (each ceiling fan, each blind, each appliance) with its specific effective life + DV/Prime Cost rate, and identifies sub-floor + structural Div 43 elements you'd never spot yourself. Our calculator gets the magnitude roughly right; for the actual numbers your accountant will lodge, get a real schedule.