Bacchus Partners prepares tax depreciation schedules for investment property owners across NSW, including Nowra, the Shoalhaven, Wollongong, Illawarra, Southern Highlands, Goulburn and surrounding regions.

A tax depreciation schedule sets out the deductions you can claim each year for the decline in value of your investment property and its assets. It is one of the more straightforward ways for property investors to reduce taxable income, and for many owners the deductions over the life of the property far outweigh the one-off cost of the report, which is itself tax-deductible.

What is a tax depreciation schedule?

A tax depreciation schedule is a detailed report that lists the depreciation deductions available on an income-producing property, year by year. It covers two distinct categories of deduction set by the Australian Taxation Office:

  • Division 43 — capital works. The structural elements of the building, such as walls, floors, roofs and fixed items, generally claimed at a set rate over 40 years from completion of construction.
  • Division 40 — plant and equipment. The removable and mechanical assets within the property, such as carpets, blinds, air conditioning and appliances, depreciated over their effective life as determined by the ATO.
Depreciation Schedule by Bacchus Partners Shoalhaven

The two work together. A complete schedule identifies both, so you claim everything you are entitled to rather than leaving deductions on the table.

Who benefits from a depreciation schedule?

A depreciation schedule is worth considering for any property held to produce income, including:

  • residential investment properties
  • commercial and industrial investment properties
  • newly built investment properties
  • renovated or improved properties
  • short-stay and holiday rentals

Owner-occupied homes do not qualify, because the deductions apply only to income-producing property. If you are unsure whether your property is worth assessing, that is exactly the sort of question the team can help you answer before you commit to a report.

New and established properties

How much you can claim depends in part on when the property was built and when you acquired it.

  • Capital works (Division 43) can generally be claimed on the building’s structure where it was built after the relevant date, regardless of when you bought it. Renovations carried out by a previous owner may also be claimable.
  • Plant and equipment (Division 40) rules changed from 1 July 2017. For second-hand residential properties acquired after that date, investors can generally only claim Division 40 depreciation on new assets they install themselves. New and commercial properties are treated differently.

These rules are the reason a property-specific assessment matters. A schedule tailored to your property and your circumstances is what tells you what is actually claimable, rather than a general estimate.

How Bacchus Partners can help

Bacchus Partners helps investment property owners get a clear, ATO-compliant depreciation schedule for their property.

The team can:

  • assess whether a depreciation schedule is worthwhile for your property
  • identify the Division 43 capital works and Division 40 plant and equipment that can be claimed
  • prepare a detailed schedule setting out deductions year by year
  • provide a report your accountant or tax agent can use directly at tax time

A depreciation schedule is a one-off report that keeps working for you across the years you hold the property, and the cost of preparing it is tax-deductible. The ATO’s guidance on capital works deductions and depreciating assets sets out the framework these schedules are built on.

Local service across the Shoalhaven, Illawarra and Southern Highlands

Bacchus Partners is based in Nowra and Bomaderry and works with property owners across the Shoalhaven, Illawarra, Southern Highlands, Goulburn and surrounding regions.

The team prepares depreciation schedules for investment properties in areas such as Nowra, Bomaderry, Worrigee, Berry, Ulladulla, Kiama, Wollongong, Shellharbour, Bowral, Mittagong, Moss Vale and Goulburn.

Why choose Bacchus Partners?

Bacchus Partners has provided building and property certification services since 1999. The business is family-owned and based in Nowra, with experience across residential, commercial and industrial property.

Led by Paul Bacchus, an A2 accredited certifier with more than 25 years of experience, the team combines a close understanding of buildings with practical, responsive service for property owners across the region.

Related building certification services

Bacchus Partners can also assist with:

Frequently asked questions

What is a tax depreciation schedule?

A tax depreciation schedule is a report that sets out the deductions you can claim each year for the decline in value of an investment property and its assets, across both Division 43 capital works and Division 40 plant and equipment.

Which properties can claim depreciation?

Properties held to produce income, such as residential, commercial and industrial investment properties, can claim depreciation. Owner-occupied homes cannot.

Is the cost of the schedule tax-deductible?

Yes. A depreciation schedule is a one-off report, and its cost is tax-deductible. It continues to provide deductions across the years you hold the property.

Can I still claim on an older property?

Often, yes. Capital works deductions may apply to the structure and to past renovations, even on older properties. What is claimable depends on the construction date and your circumstances, which is what a property-specific schedule confirms.

Does my accountant use the schedule?

Yes. The schedule is prepared so your accountant or registered tax agent can apply the deductions directly in your tax return.

Need a depreciation schedule?

If you own an investment property, a depreciation schedule could uncover deductions you are currently missing.

Send through your property details and the team will help you work out whether a schedule is worthwhile. Contact Bacchus Partners or call 02 4421 3752.