What Is Included in a Depreciation Report Schedule?
- Propti
- Jan 19
- 3 min read
A depreciation report schedule is a detailed breakdown of all the depreciation deductions a property investor can legally claim on an investment property. Prepared by a qualified quantity surveyor, it forms the backbone of a tax depreciation report and is relied on by accountants to complete accurate, ATO-compliant tax returns.
Understanding what’s included in a depreciation report schedule helps investors maximise deductions and avoid missing legitimate claims.
What Is a Depreciation Report Schedule?
A depreciation report schedule is the year-by-year calculation section of a tax depreciation report. It outlines:
What assets can be depreciated
How much can be claimed each financial year
How long deductions can be claimed for
In most cases, the schedule runs for up to 40 years and is updated annually by your accountant using the same report.
Key Components Included in a Depreciation Report Schedule
1. Capital Works Deductions (Division 43)
Capital works relate to the building structure and permanent improvements. These deductions are usually claimed at 2.5% per year and may include:
Walls, floors, ceilings, and roofs
Concrete slabs and foundations
Fixed cabinetry and joinery
Bathrooms and kitchens
Structural renovations and extensions
For many properties, capital works form the largest long-term component of a depreciation schedule.
2. Plant and Equipment Deductions (Division 40)
Plant and equipment covers removable or mechanical assets within the property. Each asset has its own effective life as determined by the ATO.
Common examples include:
Air conditioning units
Hot water systems
Ovens, cooktops, and rangehoods
Carpets and blinds
Smoke alarms and exhaust fans
A depreciation report schedule itemises each asset separately, showing how deductions decline over time.
3. Asset Register
A depreciation schedule includes a full asset register, listing:
Each depreciable item
Original value or estimated construction cost
Effective life
Depreciation method used
This register provides transparency and supports the figures used in your tax return if queried by the ATO.
4. Annual Depreciation Breakdown
One of the most important inclusions is the year-by-year depreciation table, which shows:
Annual depreciation amounts
Opening and closing values
Remaining effective life
Totals for each financial year
This allows accountants to quickly apply the correct figures each year without recalculating.
5. ATO-Compliant Methodology
A compliant depreciation report schedule includes:
ATO-approved depreciation methods
Legislative references
Quantity surveyor declarations
Supporting notes and assumptions
A Propti depreciation report schedule is structured so accountants can confidently rely on it without further adjustments.
6. Low-Value Pooling (Where Applicable)
In some cases, the schedule may include low-value pooling, which groups certain assets to accelerate depreciation. This can improve early-year cash flow and is clearly outlined for accountant use.
Does Every Property Have the Same Depreciation Schedule?
No. Depreciation report schedules vary based on:
Property age
Construction date
Renovations or upgrades
Residential vs commercial use
Ownership structure (individual, trust, SMSF)
This is why depreciation schedules must be property-specific and professionally prepared.
Who Uses the Depreciation Report Schedule?
The schedule is primarily used by:
Accountants (for tax returns)
Property investors (for cash flow planning)
SMSF trustees
Advisers and financial planners
Without a depreciation report schedule, deductions may be under-claimed or missed entirely.
How Do I Get a Depreciation Report Schedule?
To obtain a depreciation report schedule, you’ll need a professionally prepared tax depreciation report. This typically involves:
Supplying property details
A site inspection (if required)
Preparation by a qualified quantity surveyor
Delivery of a full depreciation schedule
You can order a depreciation report schedule through Propti, with reports designed specifically for property investors and their accountants.
Final Thoughts
A depreciation report schedule is not just a spreadsheet — it’s a long-term tax planning tool. When prepared correctly, it can unlock thousands of dollars in legitimate tax deductions over the life of an investment property.
If you own an investment property and don’t have a depreciation schedule, you may be paying more tax than necessary.
