Helping clients make the most from their investment
Helping clients make the most from their investment
If you own a rental property in Melbourne, tax depreciation represents one of your most valuable—yet often overlooked—investment deductions. A professionally prepared residential tax depreciation schedule can deliver thousands of dollars in annual tax savings, significantly improving your property’s cash flow without requiring any additional expenditure.
At Costin Quantity Surveyors, we specialize in maximizing tax depreciation deductions for Melbourne residential investment properties including apartments, houses, townhouses, units, and multi-dwelling developments. Our comprehensive schedules ensure you claim every dollar available under Australian taxation law.
Rental property depreciation works as a “paper deduction”—you claim substantial tax savings without spending money each year. These deductions reduce your taxable rental income, resulting in:
For many Melbourne investors, depreciation deductions can mean the difference between a negatively geared property that drains resources and one that’s financially sustainable or even positively geared.
The depreciation available on residential properties varies based on construction age, property type, and inclusions, but typical deductions include:
The structural components of your residential investment property depreciate at 2.5% annually for 40 years. Claimable capital works include:
One of the most valuable aspects of residential depreciation is claiming renovations completed by previous owners. Our quantity surveyors research council records, building permits, and property history to identify:
Many investors are surprised to discover their "old" property has substantial capital works deductions available from improvements made years or even decades ago.
Residential properties contain numerous removable assets that depreciate separately, often at much faster rates than building structures:
For residential properties purchased after 9 May 2017, plant and equipment depreciation can only be claimed on assets you personally purchased and installed (or assets in brand new properties). However, capital works (Division 43) remain fully claimable regardless of when you purchased or who completed the works. This makes identifying historical renovations even more critical for established property investors.
Provide your property address and basic details. We’ll estimate potential deductions and confirm our fee—with no obligation.
This Melbourne-specific knowledge ensures accurate valuations and comprehensive claim identification.
Yes! Even properties built in the 1960s-1980s often have substantial depreciation available from:
Our research frequently identifies renovation works previous owners completed, adding significant deduction value.
Properties converted from owner-occupied to rental use still qualify for depreciation from the rental commencement date forward. We structure your schedule to minimize deductions during the owner-occupied period and maximize claims during rental periods—fully within ATO guidelines.
No, you’re not obligated to claim depreciation. However, the ATO considers depreciation as occurring regardless of whether you claim it. This means if you skip claiming for several years, you can’t later claim those “missed” years—the depreciation has effectively occurred. It’s almost always beneficial to claim available deductions.
Depreciation claimed throughout ownership may affect your capital gains tax calculation. However, the annual tax savings during ownership typically far exceed any CGT impact, and your accountant can advise on strategies to minimize CGT liability. The long-term financial benefit of claiming depreciation almost always outweighs the potential CGT considerations.
Don’t leave thousands of dollars in unclaimed deductions on the table. A professional residential tax depreciation schedule from Costin Quantity Surveyors ensures you capture every available deduction while maintaining complete ATO compliance.
Contact our Melbourne residential depreciation specialists today for a free, no-obligation property assessment.
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