Key takeaways
- A typical Australian investment property can yield $5,000 to $15,000+ per year in depreciation deductions, covering both Division 43 capital works and Division 40 plant and equipment.
- Software tools like propkt and TaxTank let you maintain and update a depreciation schedule yourself, while quantity surveyors (Washington Brown, BMT, Duo Tax) provide a professionally inspected initial schedule for $600 to $800.
- The best approach for most landlords is to combine both: get a professional schedule first, then maintain it with software as you add or replace assets.
- The cost of a professional depreciation schedule is tax-deductible and typically pays for itself many times over in the first year of claimed deductions.
Depreciation is one of the most valuable and most overlooked deductions available to Australian property investors. The ATO allows you to claim deductions on the decline in value of your property's structure (Division 43 capital works) and its fixtures, fittings, and equipment (Division 40 plant and equipment). For a typical investment property, depreciation deductions can be worth $5,000 to $15,000+ per year in the early years of ownership.
Despite this, many landlords either do not claim depreciation at all or claim far less than they are entitled to. The reason is usually that the process seems complicated. You need to know the ATO's effective life rulings, choose between diminishing value and prime cost methods, and track dozens of individual assets over their useful lives.
This guide reviews five approaches to managing depreciation for Australian rental property. Some are software tools you manage yourself. Others are professional services where a quantity surveyor prepares the schedule for you. The right choice depends on your property type, budget, and how hands-on you want to be.
1. propkt
Best for: Self-managing landlords who want to build and maintain their own depreciation schedule alongside their property management
Pricing: Free for one property. Pro plan from $12/month for unlimited properties.
propkt includes built-in depreciation schedule management as a core feature, not an add-on. You can add Division 40 plant and equipment assets and Division 43 capital works, select the depreciation method (diminishing value or prime cost), and the system calculates annual deductions using ATO-compliant effective life rulings.
What makes propkt's approach different from a standalone depreciation calculator is that it integrates with the rest of your property finances. Depreciation deductions flow into your tax summary and are included in the tax package export that you hand to your accountant at EOFY. You are not calculating depreciation in one tool and then manually transferring the figures somewhere else.
propkt also provides a free depreciation calculator that anyone can use to estimate depreciation on individual assets without signing up. It is a useful starting point if you want to understand how much you might be able to claim.
The trade-off is that propkt is a self-service tool. You add the assets and their values. If you are unsure about what to include or how to value assets, you may still need a quantity surveyor for the initial schedule, which you can then maintain in propkt going forward.
Pros:
- Built-in depreciation tracking with ATO-compliant rates and methods
- Both Division 40 and Division 43 asset support
- Depreciation flows into tax summary and tax package export
- Free tier includes depreciation for one property
- Free depreciation calculator for quick estimates
Cons:
- Self-service: you need to know your asset values and what to include
- No physical property inspection (unlike quantity surveyor services)
- Best used after you have an initial schedule from a quantity surveyor
Best if you want ongoing depreciation tracking integrated with your property management and tax reporting. Ideal for maintaining an existing schedule or for landlords who are comfortable adding their own assets.
2. TaxTank
Best for: Investors who want depreciation tracking as part of a broader multi-asset tax platform
Pricing: From approximately $20 to $40/month depending on plan.
TaxTank includes depreciation tracking as part of its broader tax platform. You can enter property assets, select depreciation methods, and the platform calculates deductions. Like propkt, TaxTank supports both Division 40 and Division 43 and uses ATO effective life rulings.
TaxTank's advantage is that depreciation is calculated within the context of your broader tax position. If you invest in property, shares, and crypto, TaxTank shows you how depreciation deductions interact with your other income and deductions. Bank feed integration means your rental income and expenses are imported automatically, and depreciation deductions are layered on top.
The trade-off is that TaxTank is primarily a tax platform, not a property management tool. It does not track tenants, manage leases, or handle maintenance. You need a separate tool for property management.
Pros:
- Depreciation tracking within a comprehensive tax platform
- Multi-asset class support (property, shares, crypto)
- Bank feed integration for automatic transaction import
- Capital gains tax calculations that factor in depreciation
Cons:
- No property management features
- No free tier
- Higher price point than property-specific tools
- Depreciation tracking is one feature among many, not the primary focus
Best if you invest across multiple asset classes and want depreciation tracking as part of a comprehensive tax platform with bank feeds.
3. Washington Brown
Best for: Investors who want a professionally prepared depreciation schedule from experienced quantity surveyors
Pricing: Typically $700 to $800 for a full depreciation schedule. Check their website for current pricing.
Washington Brown is one of Australia's most established quantity surveyor firms specialising in tax depreciation schedules. They have been preparing schedules for property investors for over 40 years. When you engage Washington Brown, a qualified quantity surveyor inspects your property (in person or using detailed plans and photos), identifies every depreciable asset, values them, and produces a comprehensive depreciation schedule.
The resulting schedule covers the full 40-year life of Division 43 capital works and all Division 40 plant and equipment items. It is prepared by qualified professionals and designed to withstand ATO scrutiny. Washington Brown also provides a free online depreciation calculator for quick estimates before you commit to a full schedule.
The trade-off is cost. A full schedule runs $700 to $800, which is a significant upfront expense. However, the fee itself is tax-deductible, and a good schedule typically identifies deductions worth many times its cost in the first year alone.
Pros:
- Professionally prepared by qualified quantity surveyors
- Physical property inspection for accurate asset identification
- Comprehensive coverage of all depreciable items
- Schedule designed to withstand ATO scrutiny
- 40+ years of experience
Cons:
- Upfront cost of $700 to $800
- One-time document (not a living, updating tool)
- You need to manually track new assets added after the inspection
- Turnaround time typically 1 to 2 weeks
Best if you want the most accurate, comprehensive depreciation schedule possible and are willing to pay for professional preparation. Especially recommended for newer properties where depreciation deductions are highest.
4. BMT Tax Depreciation
Best for: Investors who want a quantity surveyor with a strong reputation and free estimate tools
Pricing: Typically $700 to $770 for a full depreciation schedule. Check their website for current pricing.
BMT Tax Depreciation is another leading Australian quantity surveyor firm specialising in property depreciation schedules. Like Washington Brown, BMT prepares comprehensive schedules based on property inspections. They have offices across Australia and a large team of qualified quantity surveyors.
BMT provides a well-known free online depreciation calculator that gives property investors a quick estimate of potential deductions. This can be useful for determining whether a full schedule is worth the investment for your specific property. Their schedules cover both Division 40 and Division 43 assets and are designed for ATO compliance.
BMT also publishes educational content about depreciation, which can help landlords understand what they are entitled to claim and how the process works.
Pros:
- Experienced quantity surveyor firm with national coverage
- Free online depreciation estimator tool
- Comprehensive schedules covering all depreciable assets
- Strong reputation with accountants
- Educational resources about depreciation
Cons:
- Upfront cost similar to Washington Brown
- One-time schedule (same limitation as all QS services)
- New assets added after inspection need separate tracking
- Property inspection required
Best if you want a professionally prepared schedule and value the free estimator tool to assess potential deductions before committing.
5. Duo Tax
Best for: Budget-conscious investors who want a competitively priced quantity surveyor service
Pricing: Typically from $600 to $700 for a full depreciation schedule. Check their website for current pricing.
Duo Tax is a quantity surveyor firm that positions itself as offering competitive pricing on depreciation schedules. They prepare schedules that cover Division 40 and Division 43 assets, comply with ATO requirements, and include comprehensive asset identification.
Duo Tax has built a reputation for responsive service and competitive pricing. For investors who want a professional schedule but are price-sensitive, Duo Tax is worth comparing against the larger firms.
Like all quantity surveyor services, the schedule is a one-time document. Once prepared, it covers the expected depreciation over the life of existing assets, but any new assets you add to the property (a new dishwasher, new carpet, a renovation) need to be tracked separately.
Pros:
- Competitive pricing compared to larger firms
- Comprehensive ATO-compliant schedules
- Responsive service
- Covers both Division 40 and Division 43 assets
Cons:
- Smaller firm with less brand recognition
- Same one-time schedule limitation as all QS services
- Coverage may vary by location
- New assets still need separate tracking
Best if you want a professional depreciation schedule at a competitive price point and are comfortable with a smaller firm.
Self-Service vs. Professional: When to Use Each
The choice between software tools (propkt, TaxTank) and quantity surveyor services (Washington Brown, BMT, Duo Tax) is not either/or. The best approach is often to combine both:
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Get a professional schedule first. A quantity surveyor identifies assets you would miss and values them accurately. This is especially important for newer properties where depreciation is highest.
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Maintain it with software. Once you have the initial schedule, use a tool like propkt to track ongoing depreciation, add new assets as you acquire them, and include the deductions in your annual tax reporting.
This approach gives you the accuracy of a professional inspection with the convenience of ongoing software tracking.
| Approach | Best For | Cost | Accuracy | Ongoing Tracking |
|---|---|---|---|---|
| propkt (self-service) | Maintaining schedules, tracking new assets | Free to $12/mo | Good (if you know your assets) | Yes, built in |
| TaxTank (self-service) | Multi-asset tax tracking | $20-40/mo | Good (if you know your assets) | Yes, within tax platform |
| Quantity Surveyor | Initial comprehensive schedule | $600-800 one-time | Excellent (professional inspection) | No (one-time document) |
| Both combined | Best overall approach | QS fee + software sub | Excellent + ongoing | Yes |
Key Depreciation Concepts
If you are new to property depreciation, here are the essentials:
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Division 40 covers plant and equipment: carpets, blinds, ovens, hot water systems, air conditioning units, and other removable fixtures and fittings. These typically have effective lives of 5 to 15 years.
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Division 43 covers capital works: the building structure itself, including walls, floors, roofing, and built-in fixtures. Capital works are depreciated at 2.5% per year over 40 years (for properties built after September 1987).
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Diminishing value method gives higher deductions in the early years that decrease over time. Best if you plan to sell or renovate within a few years.
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Prime cost method gives equal deductions each year over the asset's effective life. Best if you plan to hold the property long-term.
Use our free depreciation calculator to see how these methods compare for specific assets.
How We Chose These Options
We evaluated depreciation tools and services on criteria relevant to Australian property investors:
- ATO compliance: Does the tool or service use current ATO effective life rulings and approved methods?
- Asset coverage: Does it handle both Division 40 and Division 43 deductions?
- Integration: Does depreciation flow into your broader tax reporting?
- Accuracy: How confident can you be in the depreciation figures?
- Value for money: What do you get relative to the cost, considering the deductions you will claim?
Final Thoughts
Depreciation is not optional for serious property investors. The deductions are legitimate, often substantial, and available to anyone who owns an investment property with depreciable assets. Not claiming depreciation is leaving money on the table. For more on what you can claim, see our guide to rental property tax deductions.
For a new property or one you have never had a depreciation schedule prepared for, start with a quantity surveyor. The $600 to $800 cost is tax-deductible and typically pays for itself many times over in the first year of claimed deductions.
Once you have the initial schedule, maintain it with propkt. Add new assets as you acquire them, let the software calculate annual deductions, and include everything in your tax package export at EOFY. For a step-by-step walkthrough, see our guide on how to calculate depreciation for a rental property. The combination of a professional initial schedule and ongoing software tracking gives you the most complete and accurate depreciation management.