Helping clients make the most from their investment
Helping clients make the most from their investment
Tax depreciation is one of the largest deductions available to Australian property investors and business owners—yet it remains significantly underutilized. A professionally prepared tax depreciation schedule can deliver thousands of dollars in annual tax savings, improving your cash flow without requiring any additional out-of-pocket investment.
At Costin Quantity Surveyors, we specialize in preparing comprehensive, ATO-compliant tax depreciation schedules for residential, commercial, and business properties throughout Melbourne and across Australia. Our chartered quantity surveyors and registered tax agents ensure you claim every dollar you’re legally entitled to, while maintaining complete compliance with Australian taxation legislation.
Tax depreciation is an accounting concept that recognizes the natural decline in value of buildings and assets over time due to wear and tear. Even when property values increase in the real estate market, the Australian Taxation Office acknowledges that building structures and installed assets deteriorate and lose value—making this loss claimable as a legitimate tax deduction.
This depreciation applies to income-producing properties including rental residences, commercial buildings, and business premises. The deduction is claimed against your property’s assessable income in the same way as other property expenses like council rates, insurance, interest payments, and maintenance costs.
Unlike other property deductions that require actual expenditure each year, depreciation is a calculated “paper” deduction. You don’t need to spend money annually to claim it—the deduction is determined by a qualified quantity surveyor based on construction costs and asset values.
Australian tax legislation provides two distinct categories of depreciation for income-producing properties:
Division 43 covers the structural elements and permanent fixtures of your property—essentially anything constructed or built as part of the building itself.
What's Included:
Capital works are depreciated using the prime cost method at a rate of 2.5% per annum for qualifying construction. This provides consistent annual deductions over a 40-year period
One significant advantage of Division 43 is the ability to claim capital works completed by previous property owners. Our quantity surveyors research property history, council records, and construction documentation to identify renovations, extensions, and improvements made throughout the building's life—potentially adding substantial value to your schedule
Division 40 covers removable assets and equipment installed within your property—items that can be easily replaced or removed without affecting the building's structure.
What's Included:
Your tax depreciation schedule will present both methods, allowing you and your accountant to select the approach that best suits your financial circumstances.
Changes to legislation in 2017 mean that plant and equipment assets in previously used residential properties (purchased after 9 May 2017) can only be claimed by the owner who purchased them. However, assets in brand new properties, commercial buildings, and business premises remain fully claimable regardless of purchase date.
Our comprehensive tax depreciation schedules are designed to maximize your deductions while remaining completely ATO-compliant and easy for your accountant to apply.
Schedule Features:
40 Years of Forecast Deductions
Unlike basic schedules that expire after 5-10 years, our reports provide four decades of annual deduction forecasts. Purchase your schedule once and use it every year throughout your property ownership.
Both Depreciation Methods Reported
We calculate and present both diminishing value and prime cost methods for plant and equipment, complete with tables and graphs showing the financial impact of each approach. This flexibility allows you to select the method that optimizes your tax position.
Complete Division 43 Capital Works Analysis
Our schedules detail all qualifying construction works including:
Itemized Division 40 Plant and Equipment Assets
Every claimable asset is individually listed with:
Low-Cost and Low-Value Pooling
We identify opportunities to accelerate deductions through:
Scrapping and Disposal Calculations
When you remove or replace assets, we calculate:
Clear Guidance and Instructions
Every schedule includes:
Contact information for free ongoing support.
Tax depreciation is available to owners of income-producing properties across various categories:
Property Investors & Landlords
If you own a residential property that generates rental income—whether it’s an apartment, house, townhouse, or unit—you can claim tax depreciation deductions.
Commercial Property Owners
Owners of office buildings, retail spaces, warehouses, industrial facilities, and other commercial properties can claim substantial depreciation on both building structures and fit-outs.
Business Owners
If your business owns the premises it operates from, or you’ve completed fit-out works as a commercial tenant, you can claim depreciation on eligible building works, leasehold improvements, and business equipment.
Property Developers
Developers can provide tax depreciation schedules to purchasers as part of their sales packages, adding value to investment property offerings.
Trusts, Companies & Superannuation Funds
Tax depreciation is available regardless of ownership structure. Properties held in family trusts, companies, or self-managed superannuation funds (SMSFs) qualify for depreciation deductions.
Maximized Deductions
Professional quantity surveyors are recognized by the ATO as qualified to estimate both construction costs and asset values. Our expertise ensures:
DIY depreciation calculations or basic spreadsheets typically miss thousands of dollars in available deductions simply because they lack the depth of analysis and construction costing expertise that chartered quantity surveyors provide.
ATO Compliance & Audit Protection
Tax depreciation claims are scrutinized during ATO reviews and audits. Our schedules provide complete audit protection because they are:
If the ATO requests substantiation of your depreciation claims, our comprehensive schedules provide the professional evidence required.
Time & Cost Savings
Attempting to calculate depreciation yourself requires:
Engaging Costin Quantity Surveyors means:
Most importantly, the additional deductions we identify typically far exceed the cost of our service—often by four times or more in the first year alone.
Accountant Efficiency
Your accountant’s time is valuable and expensive. Providing them with a professionally prepared tax depreciation schedule means they can:
Guaranteed Minimum Returns
We’re confident in our ability to maximize your deductions. For tax depreciation schedules, we guarantee minimum first-year deductions of at least four times our professional fee. If we can’t deliver this value, we don’t charge you.
No Upfront Payment Required
You don’t pay until we’ve completed your comprehensive schedule and demonstrated the value we’ve identified.
Comprehensive Historical Research
We don’t just assess what’s visible today. Our team conducts thorough research including:
This detailed investigation frequently uncovers renovations, extensions, and improvements completed years or decades ago—adding thousands in previously unclaimed deductions.
Scrutinise depreciable items
We review depreciable items in detailed to:
Free Ongoing Updates & Support
Unlike competitors who charge for every minor change, Costin includes:
Report Format
We provide your schedule in Professional PDF formats that work for you
Specialist Expertise
Not all quantity surveyors specialize in tax depreciation. Our team focuses exclusively on this area, providing:
Step 1: Request a Free Estimate
Contact us with your property address and basic details. We’ll provide a no-obligation assessment of potential deductions and confirm our professional fee.
Step 2: Provide Basic Information
If you decide to proceed, we’ll request:
Step 3: Property Research & Analysis
Our team conducts comprehensive research:
Step 4: Schedule Preparation
Our chartered quantity surveyors prepare your comprehensive schedule including:
Step 5: Delivery & Support
Receive your completed schedule within 1-2 days of order form and information receipt, along with:
Property Types We Service:
Residential Investment Properties
Commercial Properties
Business Premises
Specialized Properties
The optimal time to order your tax depreciation schedule is immediately after purchasing an income-producing property or converting an existing property to rental use. This ensures you claim maximum deductions from your first tax return.
However, you can claim backdated depreciation for previous years (within ATO limitations), so if you’ve owned an investment property for years without a schedule, you haven’t necessarily missed out—contact us to discuss your situation.
Our fees vary based on property type, age, and complexity:
Importantly, remember that:
Yes! Many investors mistakenly believe older properties have no depreciation value. While buildings constructed before 1985 don’t qualify for capital works deductions, they may still have:
Even properties from the 1950s-1970s frequently have substantial depreciation available through renovations, modern asset additions, and improvements made by previous owners.
Australian tax law allows you to amend previous tax returns (typically up to 2-4 years depending on circumstances) to claim previously unclaimed depreciation deductions. This can result in significant tax refunds.
Even if you can’t backdate claims, obtaining a schedule now ensures you don’t continue missing valuable deductions in future years.
When you complete substantial renovations or add new assets, we’ll update your existing schedule free of charge to include these new items. Simply provide details of the works completed and their costs, and we’ll incorporate them into your depreciation schedule.
Minor asset additions (like replacing an air conditioner) can often be added by your accountant using the guidance in your original schedule.
With over 15 years serving Melbourne’s property investment community, Costin Quantity Surveyors has helped thousands of investors, business owners, and property professionals maximize their tax deductions while maintaining complete ATO compliance.
Our combination of construction expertise, tax legislation knowledge, and commitment to client service makes us Melbourne’s preferred choice for tax depreciation schedules.
Contact our Melbourne team today for a free, no-obligation assessment of your property’s depreciation potential. We’ll explain exactly what deductions are available and how our service will benefit your investment.
Maximize returns on houses, apartments, and rental properties
Claim deductions on offices, retail, and commercial buildings
Reduce tax on business premises, fit-outs, and equipment
Answers to common depreciation questions
