Property Depreciation Calculator

Estimate your non-cash tax deductions. Property depreciation (Div 40 & 43) is one of the most powerful tax offsets available to Australian property investors.

Based on ATO Division 40 and Division 43 rules · Check current rates with the ATO Rental properties guide.

Property Profile

Investment Property Address

Type of Property

My property is

Has property been owner occupied?

Construction Date (Year)

Any renovations to the property?

Number of bedrooms

Purchase Price

Date of exchange

Date of First Lease

Est. Building Cost (Structure)

Division 43 (Capital Works)

Covers the structural components of the building such as concrete foundation, brickwork, external walls, roofing, and tiling. Typically depreciated at a flat rate of 2.5% per annum over 40 years.

Est. Fitout Value (Plant)

Division 40 (Plant & Equipment)

Covers removable items and mechanical fixtures with a finite life, such as air conditioning systems, carpets, blinds, light fittings, and electrical appliances. Calculated using diminishing value (typically 15% rate) for upfront tax relief.

ATO COMPLIANCE NOTE

To claim these deductions legally, you need a certified Tax Depreciation Schedule prepared by a qualified quantity surveyor. This online tool processes professional estimates but does not replace an official report.

Get a quote for your certified schedule from a licensed quantity surveyor

From $299 + GST

ESTIMATED YEAR 1 DEDUCTIONDIVISIONAL COMPOSITE ESTIMATE

TOTAL YEAR 1 DEDUCTION•5-YEAR CUMULATIVE $0

Projection Model

10-Year Depreciation Schedule

Year-by-year estimate illustrating declining value dynamics.

Year	Capital Works (Div 43)	Plant & Equipment (Div 40)	Total Deduction	Cumulative Claimed	Remaining Value
Year 1 (2026)	$0	$0	$0	$0	$0
Year 2 (2027)	$0	$0	$0	$0	$0
Year 3 (2028)	$0	$0	$0	$0	$0
Year 4 (2029)	$0	$0	$0	$0	$0
Year 5 (2030)	$0	$0	$0	$0	$0
Year 6 (2031)	$0	$0	$0	$0	$0
Year 7 (2032)	$0	$0	$0	$0	$0
Year 8 (2033)	$0	$0	$0	$0	$0
Year 9 (2034)	$0	$0	$0	$0	$0
Year 10 (2035)	$0	$0	$0	$0	$0

Division 40 vs Division 43

Division 43 (Capital Works)

This refers to the structural shell components of the building: brickwork, concrete slab, walls, and roofing.

For both standard commercial assets and residential properties, the claim is typically calculated on historical cost at a fixed2.5% per year over 40 years.

External structures, brickwork & tile roofing
Concrete foundation, paving & stone retention walls
Structural wooden framing, plasterboard & built-in tiling

Division 40 (Plant & Equipment)

These represent mechanical parts, appliances, and easily removable fixtures that have an estimated effective lifespan shorter than the main build structure.

These assets use the ATO diminishing value method or prime cost method, yielding accelerated tax relief benefits in the initial years of ownership.

Central HVAC split-system air conditioning units
Elevators, escalators & commercial fire alarms
Heavy carpets, roller blinds, light fittings & appliances

Tax Benefits by Ownership Structure

Individual / Joint Syndicate

~Up to 47% Savings

Deductions are offset directly against your personal taxable income, providing significant cash refunds for higher bracket earners.

Corporate Structure

~25% - 30% Savings

Reduces net taxable business profits, permitting more cashflow to be reinvested into company growth or distributed to members.

SMSF (Self Managed Super)

~15% (Accumulation) Savings

Directly minimizes SMSF statutory tax loads. Note that specific structures apply when leveraged via Limited Recourse Borrowing Arrangements (LRBA).

Order a Certified Depreciation Schedule

Our specialized surveyor partners have saved commercial and residential property investors millions in tax. Get a certified depreciation schedule from $299 + GST that is 100% ATO compliant.

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Common questions

What is the difference between Division 40 and Division 43?

Division 43 (Capital Works) relates to the structural elements of a building like concrete, walls, and tiling, depreciated over 25 or 40 years. Division 40 (Plant & Equipment) covers removable assets like carpets, air conditioning units, and light fittings, which depreciate much quicker based on their individual effective lives.

Can I claim building depreciation on an older property?

Capital works claims (Div 43) are restricted by construction date thresholds. For residential investment properties, original construction must have started after 15 September 1987. For commercial buildings, eligibility scales across distinct historical start dates.