Investment Property Depreciation Report

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Maximise Your Property Tax Deductions with an ATO-Compliant Depreciation Report

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An investment property depreciation report is one of the most powerful tools available to Australian property investors looking to improve cash flow and reduce taxable income. At Propti, we prepare detailed, ATO-compliant tax depreciation reports that help investors and their accountants claim every dollar they’re legally entitled to.

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Whether you own a new build, an established property, or a recently renovated investment, a professionally prepared depreciation report schedule can unlock thousands of dollars in deductions over the life of the property.

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What Is an Investment Property Depreciation Report?

An investment property depreciation report is a detailed document prepared by a qualified Quantity Surveyor that outlines the depreciation deductions available on a rental or income-producing property.

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The Australian Taxation Office (ATO) requires depreciation to be calculated by a suitably qualified professional, which is why property investors rely on Quantity Surveyors to produce accurate and compliant building depreciation reports.

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A depreciation report allows you to:

• Claim depreciation as a non-cash tax deduction

• Reduce your taxable income

• Improve annual cash flow

• Provide clear documentation to your accountant

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What’s Included in a Depreciation Report Schedule?

A professional depreciation report schedule prepared by Propti includes a full breakdown of claimable deductions under the relevant ATO divisions:

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Capital Works Allowance (Division 43)

This covers the structural components of the building, including:

• Construction costs

• Fixed assets such as walls, roofing, concrete and joinery

• Eligible renovations and improvements

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Plant & Equipment (Division 40)

This includes removable or mechanical assets, such as:

• Appliances

• Hot water systems

• Air conditioning units

• Floor coverings and blinds

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Each report includes:

• Annual depreciation figures

• Effective life calculations

• Deductions over 40 years (where applicable)

• A clear, accountant-ready format

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Tax Depreciation Reports – How They Save You Money

Tax depreciation reports allow property investors to claim deductions without affecting cash flow.

While depreciation doesn’t cost you money each year, it can significantly reduce the tax you pay.

Your accountant uses the figures in your depreciation report to:

• Offset rental income

• Reduce overall taxable income

• Adjust PAYG withholding where applicable

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For many investors, this results in thousands of dollars in additional cash flow each year.

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Building Depreciation Report – What Can Be Claimed?

A building depreciation report can apply to a wide range of property types, including:

• New residential properties

• Established properties

• Renovated or improved dwellings

• Commercial and industrial buildings

• SMSF property investments

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Even older properties may still qualify for depreciation on renovations or eligible assets. Many investors assume depreciation doesn’t apply, only to discover significant unclaimed deductions.

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Who Needs a Property Depreciation Report?

You should consider ordering a property depreciation report if you:

• Own an investment property

• Have recently purchased a rental property

• Completed renovations or upgrades

• Own property through an SMSF

• Want to maximise tax efficiency

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If the property is income-producing, depreciation should always be assessed.

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Why Choose Propti for Your Depreciation Report?

Propti specialises in accurate, ATO-compliant depreciation reports designed for both investors and accountants. Our reports are prepared by qualified Quantity Surveyors and tailored to your specific property.

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Why investors choose Propti:

• ATO-compliant depreciation reports

• Qualified Quantity Surveyors

• Detailed, easy-to-use schedules

• Fast turnaround times

• Accountant-friendly reporting

• Suitable for residential, commercial and SMSF properties

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Frequently Asked Questions

Do I need a Quantity Surveyor for a depreciation report?

Yes. The ATO requires depreciation to be calculated by a suitably qualified professional, such as a Quantity Surveyor.

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How long does a depreciation report last?

A depreciation report generally lasts for the life of the property or until significant renovations are completed.

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Can I claim depreciation on an older investment property?

Yes. While the original building structure may be limited, renovations and plant & equipment assets may still be depreciable.

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Is a depreciation report tax deductible?

Yes. The cost of preparing a tax depreciation report is generally tax deductible.

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Order Your Investment Property Depreciation Report

If you want to maximise deductions and improve cash flow, a professionally prepared investment property depreciation report is essential.

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Contact Propti today to organise your depreciation report and ensure you’re not leaving money on the table.

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