A depreciation schedule is a detailed report prepared by a qualified quantity surveyor that lists every item in your rental property that can be depreciated for tax purposes. It covers both the building structure itself (capital works, or Division 43) and the individual fixtures and fittings inside (plant and equipment, or Division 40).
The schedule sets out how much you can claim as a deduction each year for the effective life of each asset. For a typical investment property, the total depreciation deductions over the first few years can run into thousands of dollars annually.
What Is Included
A depreciation schedule covers two main categories. Capital works deductions apply to the building structure: walls, roof, floors, fixed cupboards, and similar structural elements. Plant and equipment covers removable or mechanical items like air conditioning units, dishwashers, carpets, blinds, hot water systems, and light fittings.
The quantity surveyor inspects the property (or works from construction plans for newer builds) and assigns a value and effective life to each item based on ATO guidelines.
How Much Does It Cost?
A depreciation schedule typically costs between $600 and $800, depending on the property type and location. The fee itself is tax-deductible, and the schedule covers the remaining depreciable life of the property, often 40 years for the building structure. Most investors recoup the cost many times over in the first year of deductions alone.
Why It Matters for Landlords
Depreciation is one of the most overlooked deductions for property investors. Because it is a non-cash deduction (you do not actually spend money to claim it), many landlords either forget about it or do not realise how significant it can be. A good depreciation schedule can add $5,000 to $15,000 in deductions in the first full year, depending on the age and fit-out of the property.
propkt integrates depreciation tracking into your property records so you can see exactly how much you are claiming each year alongside your other expenses. For a quick estimate of what you could claim, try the depreciation calculator. For a detailed walkthrough, read our guide on how to calculate depreciation on your rental property.