A tax depreciation schedule is one of the most effective tools for property investors looking to reduce taxable income and improve cash flow. But like your property itself, your depreciation report shouldn’t be left to gather dust.
If your investment property has changed in any way—or even if it hasn’t for a while—it could be time to review and update your depreciation report. Failing to do so may mean missing out on valuable deductions.
Here are five common signs it’s time to update your tax depreciation schedule.
1. You’ve Renovated or Upgraded the Property
Whether it’s a full kitchen renovation, new flooring, updated landscaping, or even painting as part of a larger refurbishment, capital improvements can significantly increase your depreciation claim.
If these upgrades aren’t reflected in your current schedule, you’re likely missing out on deductions. A Quantity Surveyor can inspect the upgrades and include them in an updated report, so you can claim the full benefit over the lifespan of the improvement.
For more information on which property renovations you can claim depreciation on, read our insights here.
2. You’ve Purchased New Plant and Equipment
Appliances and fixtures like ovens, dishwashers, air conditioning units, and hot water systems fall under plant and equipment (Division 40) and depreciate more rapidly than structural elements.
If you’ve installed any new assets, updating your depreciation report ensures these are captured correctly and depreciated over their effective lives—maximising your annual claim.
3. You Bought the Property Recently
When you purchase a property, especially an established one, the depreciation report provided by the previous owner or agent may not reflect current ATO rules or the latest condition of the property.
Getting a fresh depreciation schedule tailored to your purchase price and current asset values ensures accuracy and compliance—and helps you claim everything you’re entitled to from day one.
4. The Property Has Undergone Damage or Repairs
Events like storm damage, flooding, fire, or insurance work can change the condition or structure of a property. If you’ve replaced materials or fixtures as a result, this can affect your depreciation.
An updated schedule will reflect removed or scrapped assets (which may qualify for a scrapping deduction) and incorporate the new work to keep your deductions accurate and up to date.
5. It’s Been a Few Years Since Your Last Report
Even if there haven’t been major changes to the property, tax rules and ATO guidelines can evolve over time. Having your depreciation schedule reviewed every few years ensures:
- You remain compliant with current legislation
- Your deductions are fully optimised
- Your accountant has the most accurate information for your tax return
Our team of qualified Quantity Surveyors can assess your property, review any changes, and provide a fully updated, ATO-compliant depreciation schedule. Whether you’ve recently renovated or just want peace of mind, we’ll ensure you’re claiming everything you’re entitled to.