Get the most out of your rental property

If you currently have a rental property you could be claiming thousands of dollars on your tax return each financial year. Avoid missing out on this opportunity to save thousands each year.

Depreciation is the major way in which you can claim money back on your investment. It refers to the reduction in value of an asset over time. This deterioration is value, including that relating to building, plant and equipment, can be claimed as a tax deductible expense against income producing property.

The two main elements of depreciation are on capital works allowance, and plant and equipment.

Capital works allowance refers to the deduction available for the structural elements of a building. The amount of depreciation is dependent on the age of the building. Apartment owners can claim depreciation each year on the construction cost of the building on apartments built after 1987.

Plant and equipment refers to removable assets that depreciate faster than the building. Each plant and equipment item has a typical life span and the depreciation value is calculated based on that life span. These include things like air conditioning units, oven, carpet and the dishwasher in your apartment.

The amount of money that you can claim is dependent on a range of factors including the age of the building and the size of your apartment within it. To gain an accurate and written estimate that is acknowledged by the Australian Tax Office and is also tax deductable, see your accountant or a registered quality surveyor.

Information sourced from:

BMT Quality Surveyors,, 2015

Opteon Property Group,, 2015


Disclaimer: This information provided is not advice, and should not be relied on as financial advice, you need to consult your Accountant or Financial advisor to discuss your individual circumstances.