Depreciation Estimator

When to use this

You own an investment property and want to estimate your tax depreciation deductions — one of the biggest (and most overlooked) tax benefits of property investing.

Steps

1. Enter the property purchase price.
2. Enter the estimated construction cost (usually 40–60% of the purchase price for houses — the default is pre-filled for you).
3. Enter the year the property was built.
4. Select your marginal tax rate (the tax bracket you're in — check your last tax return if unsure).

Understanding your results

• Division 43 covers building structure depreciation — the walls, roof, and foundation. It's claimed at 2.5% per year over 40 years.
• Division 40 covers fixtures and fittings like appliances, carpets, and blinds. These depreciate faster, giving you bigger deductions in the early years.
• Total deduction is what you can claim on your tax return to reduce your taxable income.
• Tax saving is the actual cash benefit — your total deduction multiplied by your tax rate.

Tips

• Always get a professional quantity surveyor's report — it typically pays for itself in the first year through higher deductions.
• Properties built after 1985 qualify for Division 43 deductions. Post-2017 rules mean you can't claim Division 40 on second-hand fixtures in established properties.