Depreciation schedule
A report, typically prepared by a qualified quantity surveyor, that lists the deductible capital works and plant-and-equipment components of an Australian rental property so the owner can claim them on their tax return.
A depreciation schedule splits an investment property’s deductions into two streams: capital works deductions under Division 43 (the building structure and fixed improvements) and plant-and-equipment deductions under Division 40 (assets like carpets, appliances, and blinds). Each item is listed with an effective life and a deduction method so the owner can claim the correct amount each year.
For residential properties, the 2017 changes to Division 40 restricted plant-and-equipment deductions on second-hand items to the original purchaser of a new property (with limited exceptions). The schedule must reflect that restriction — a generic schedule prepared without regard to acquisition date will likely overstate deductions.
A compliant schedule is one prepared by a recognised professional such as a quantity surveyor, as required by the ATO’s substantiation standards where the owner cannot self-assess construction costs.
Primary source
Australian Taxation Office (ATO) — Depreciation and capital allowances →Last reviewed 15 April 2026. Rates, thresholds, and deadlines change — always verify against the primary source before making decisions.