Tax depreciation isn’t just an accounting formality. It’s one of the smartest ways Australian property investors can boost their returns. Investors can reduce their taxable income and improve cash flow by claiming the gradual decline in value of a building and its fittings.

But here’s the catch: timing matters. Many landlords and property owners leave thousands of dollars on the table simply because they don’t know when to act. A depreciation schedule isn’t just a document for tax time. It’s a financial tool that can deliver value for decades. Let’s break down the key moments when organising a depreciation schedule can make all the difference.

1. Right After You Buy an Investment Property

This is your golden window if you’ve just secured a new investment property. Organise your depreciation schedule straight after settlement to claim deductions from day one. A professional schedule covers:

  • Capital Works (Division 43): The building structure itself.
  • Plant and Equipment (Division 40): Items like carpets, appliances, blinds, and air conditioners.

Early inspections ensure all assets are recorded in their original condition, so you don’t miss a single cent in claims. You’re not just preparing for tax time, you’re laying the groundwork for long-term financial benefit.

2. After Renovations or Upgrades

Renovating your investment? Whether it’s a new kitchen, fresh bathroom, or significant extension, your updates can unlock a new round of depreciation benefits. Here’s what many investors don’t realise:

  • You can claim a final deduction on items you’ve removed (like an old oven) and start a new depreciation cycle for the replacements.
  • Low-value pooling may apply for cheaper additions, accelerating your deductions.

The key is to update your schedule as soon as renovations are complete, so your claims start in the same financial year.

3. When You Turn Your Home into a Rental

Converting a home you once lived in into a rental property? That’s the moment your property becomes income-producing and depreciation becomes claimable.

Even if you renovated while living there, those improvements may still carry depreciable value once the property enters the rental market. Preparing your residential schedule at the point of transition ensures accurate documentation of your assets’ condition and value.

4. Before the End of the Financial Year

Want to maximise your deductions this year? Timing is everything.

Organising your schedule before 30 June means you can apply the deductions immediately. Even if you’re running late in the year, it’s still possible to finalise your report before lodgement and avoid amendments later.

For many property owners, one well-timed phone call before EOFY can unlock thousands in savings.

5. Don’t Overlook Older or Commercial Properties

Think your property is too old to bother with? Think again.

  • Older residential properties can still qualify for capital works deductions (especially if built after July 1985 or renovated).
  • Commercial properties often offer substantial depreciation benefits, including deductions for fit-outs and structural improvements.

Even with the 2017 changes to residential depreciation rules, there’s still substantial potential for deductions, especially with updated or improved properties.

And if you run a small business? The instant asset write-off may apply, giving you even more incentive to review your depreciation position.

6. Maximise Value with Your Accountant

Accountants do great work, but they can only claim what’s documented. A detailed depreciation schedule gives them everything they need to:

  • Allocate deductions accurately.
  • Work within ownership structures.
  • Stay fully ATO-compliant.

Because depreciation is a non-cash deduction, it doesn’t affect your out-of-pocket expenses but lowers your taxable income. That’s especially valuable if your property is negatively geared.

The best results come when your accountant and quantity surveyor work together, proactively, not reactively.

Why Acting Early Always Pays Off

Quality depreciation schedules are valid for up to 40 years and usually only need updating after major changes like renovations or switching to rental use. The sooner they’re in place, the more you can claim.

Our team delivers fast, ATO-compliant reports backed by extensive property experience. We handle everything from inspections to documentation, so you can focus on growing your portfolio.

Transparent Pricing, Long-Term Value

We believe in upfront, fixed-fee pricing, with no surprises and no upsells. From the initial inspection to final reporting, everything’s included. That way, you know exactly what you’re getting and how it compares to other providers.

Every report is built to stand up to ATO scrutiny and support accurate, long-term tax planning.

Ready to Get Started?

Whether your property is new, renovated, or newly turned into a rental, now’s the time to organise your depreciation schedule. Don’t let another financial year pass you by.

Book an inspection or request a free estimate today. Our qualified quantity surveyors are ready to help you maximise your returns and ensure nothing goes unclaimed.