Estimate the tax deductions your investment property could generate under the two ATO depreciation categories: Capital Works (Division 43) and Plant & Equipment (Division 40). See your Year 1 and 5-Year totals, and the estimated tax saving at your marginal rate.
⚠ This is an estimate for illustration only. A licensed Quantity Surveyor must prepare a formal Tax Depreciation Schedule before you claim - see disclaimer below.
Property Details
Property Details
Sets the default building-vs-land split below
$
Building & Plant Estimate
%
Excludes land value. Adjust if you have a surveyor or contract estimate.
$357,500
$
Ovens, cooktops, carpets, blinds, hot water systems, air-conditioning etc. Ask the builder or vendor for an itemised list, or use a rough guide of $15,000-$30,000 for a standard new house.
Your Income (for tax saving estimate)
$
Your Depreciation Estimate
Based on the details entered
Estimated Year 1 Deduction
$0
Capital Works + Plant & Equipment
Capital Works (Div 43)Plant & Equipment (Div 40)
Plant & Equipment not claimable here. Since 1 July 2017, owners of established residential properties can't depreciate plant & equipment that was already in the property when purchased - only assets they later install themselves. This calculator reflects that ATO rule (Div 40, Treasury Laws Amendment (Housing Tax Integrity) Act 2017).
Year 1 Breakdown
Capital Works (Div 43)$0
Plant & Equipment (Div 40)$0
Total Year 1 Deduction$0
Estimated Tax Saving (at your marginal rate)
Year 1
$0
0% marginal rate
Over 5 Years
$0
Cumulative saving
5-Year Cumulative Deduction
Capital Works (Div 43)$0
Plant & Equipment (Div 40)$0
Total 5-Year Deduction$0
Capital Works Remaining
Years remaining (of 40)40
Total capital works still claimable$0
Methodology & assumptions
Capital Works (Div 43): 2.5% of the building's construction cost per year, straight-line over 40 years from the completion date - available for residential buildings where construction started after 15 September 1987. If the property was built earlier, this calculator assumes $0 unless it has since been substantially renovated (check with your accountant).
Building value split: Building value defaults to a rule-of-thumb % of purchase price by property style (House 55%, Townhouse 65%, Unit/Apartment 75%) - land value is excluded. This is an assumption you should override if you have a surveyor's estimate.
Plant & Equipment (Div 40): modelled on a blended 8-year effective life across a typical asset pool (ovens, carpets, blinds, hot water, air-conditioning etc.), using the diminishing value method at 2 ÷ effective life = 25% per year - a simplification of the ATO's asset-by-asset effective life table (TR 2021/3).
2017 ATO rule: established residential properties can't claim Div 40 on plant & equipment already in the property at purchase - only new residential builds, or commercial property of any age, are modelled as eligible here.
Tax saving: Year 1 and 5-year deductions multiplied by your marginal tax rate bracket based on the income entered (2024-25 resident rates, excludes Medicare Levy and any offsets).
Estimate only, for illustration. Actual deductions depend on a formal Tax Depreciation Schedule prepared by a qualified Quantity Surveyor, your individual construction cost records, and your accountant's advice. Timar Buyers Agency does not provide tax or financial advice. Figures and tax rules may change.
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