Tax Depreciation Schedule

It is a common myth that older properties will attract no depreciation claim. However, both new and old properties will hold some depreciation benefits.

A depreciation schedule is the best way to ensure the biggest tax refund possible. A LBI Tax Depreciation Schedule covers all deductions available over the lifetime of a property.

We work with your accountant to ensure that your depreciation claim for your investment property is maximised each financial year. The ATO states in taxation ruling 97/25 that quantity surveyors are one of the only recognised professions with the appropriate construction costing skills to estimate construction costs for depreciation purposes.  Other professions include builders, architects, and engineers. 

Although we are not quantity surveyors, our skills in the building industry and our partnerships with highly skilled surveyors across the country mean we can provide a superior service to our clients at a very competitive price.

Yes. Anything in the property that is part of a previous renovation will be estimated by our quantity surveyors and depreciated accordingly, even if the work was completed by a previous owner. This includes items that are not obvious, for example new plumbing, water proofing or electrical wiring

Yes, we inspect properties to ensure all depreciable assets are identified and included, maximising the available depreciation deductions. Conducting an on-site inspection allows us to prepare schedules that are fully compliant with Australian Taxation Office requirements.

A Tax Depreciation Schedule lasts for forty years. The Australian Taxation Office has set a maximum effective life of forty years for any building eligible for depreciation claims, calculated from the construction completion date. This means a newly constructed building can claim deductions over the full forty-year period, while an older property can claim deductions for the remaining duration within that forty-year window.

To get started, you’ll typically need to provide:

• The settlement date for the property
• The purchase price
• Contact details for the property manager or tenant to coordinate site access
• Details on any renovations, improvements, or additions made
• The date the property first generated rental income

Each property is unique, so we may need some additional information from you. However, if you request a quote, one of our staff members will reach out to discuss your specific depreciation needs and ensure we have all the necessary details

You only need one tax depreciation schedule per investment property. It’s recommended to get your schedule soon after settlement to ensure claiming maximum deductions right away.

We will conduct the necessary searches required to accurately determine the age of your building. These can include historical council searches regarding lodged development applications as well as occupancy certificates and certified final inspections. We look at things on site, too, such as materials and age of equipment.