Depreciation Schedule for Investment Property | Cost, Timing & EOFY Guide

A depreciation schedule for an investment property is the report that turns building costs, plant items, and ATO depreciation rules into claimable yearly deductions. If you are approaching 30 June, the practical question is not just “what is depreciation?” but “do I need the schedule this year, what might it cost, and which tool should I use next?”

This guide is built for that decision. It explains what the schedule covers, what provider pricing pages currently suggest you may pay, what to organise before EOFY, and when the better next step is the ATO rental property worksheet for tax-time records or the broader property investment spreadsheet for projections, CGT, land tax, and hold-vs-sell modelling.

What a depreciation schedule actually does

A tax depreciation schedule is the working report used to claim depreciation on an income-producing property. In practice, it pulls together two different deduction streams:

1. Division 43 capital works on the building structure, typically over 40 years (ATO — Capital works deductions (Div 43))
2. Division 40 plant and equipment on eligible assets such as carpets, blinds, hot water systems, and air conditioning (ATO — Depreciating assets in rental properties)

That makes the schedule different from a one-off calculator result.

• The property depreciation calculator helps you estimate the deduction.
• The depreciation schedule is the supporting report you use year after year.
• The ATO rental property worksheet helps you keep the annual figures organised for your return.
• The property investment spreadsheet is the broader model when you also want land tax, CGT, projections, and hold-vs-sell decisions.

Do you likely need one before 30 June?

You are a strong candidate to order or update a depreciation schedule this EOFY if one or more of the following applies:

• You bought a rental property recently and do not already have a schedule
• The property was built after 15 September 1987 and you have never claimed Division 43 properly
• You renovated, replaced, or added new plant and equipment during the year
• You want cleaner year-end figures for your accountant instead of rebuilding them from invoices in July
• You are comparing whether the likely deductions justify the report fee

You may not need one immediately if:

• You already have a current schedule and nothing material changed
• The property is too old for meaningful Division 43 and you have not installed new items
• Your immediate goal is only to organise one year of rental income and expenses, in which case the ATO rental property worksheet may be the better first step

What changed after 9 May 2017

This is where many investors get confused. For most residential rental properties purchased after 9 May 2017, the second-hand asset restriction means you generally cannot claim Division 40 depreciation on existing used plant and equipment that came with the property .

That does not mean depreciation disappeared.

• Division 43 on the building can still be available
• New items you install yourself can still create Division 40 deductions
• Renovation work can change what is claimable and how it is tracked

So the schedule is still useful, but the value may now come from a different mix of claims than investors expect.

What a depreciation schedule may cost

Published provider pricing pages currently suggest a standard residential depreciation schedule is commonly quoted in roughly the $385 to $770 range, with the final fee varying by property type, location, inspection needs, and whether the property is brand new or established.

That range matters for two reasons:

1. It is usually a one-off cost rather than an annual subscription
2. The real comparison is not fee vs fee, but fee vs the deductions you expect to uncover

For an investor who expects several thousand dollars of annual depreciation, the decision is often less about whether the report costs a few hundred dollars and more about whether they are leaving claimable deductions unmodelled.

If your goal is just to keep annual records tidy, start with the ATO rental property worksheet. If your goal is to decide whether the report fee pays for itself and how the deductions flow into cash flow, CGT, and hold-vs-sell timing, go straight to the property investment spreadsheet.

Why timing still matters before EOFY

The best time to arrange a schedule is often soon after settlement, while the property details, invoices, and renovation history are still easy to gather. But EOFY is still a natural checkpoint because it forces the same practical questions:

• Do you already have a usable schedule for this year?
• Do you know what deductions belong in this year’s return?
• Have you separated existing assets from new items you installed yourself?
• Will your accountant get a clean set of depreciation figures, or will they be guessing from incomplete records?

Ordering before 30 June does not magically create deductions that do not exist. What it does do is reduce the chance that the depreciation work becomes a rushed afterthought when the return is being prepared.

EOFY checklist before you order the schedule

Gather the following first:

• Settlement statement and purchase details
• Construction year, if known
• Renovation invoices or builder documentation
• Receipts for new items you installed after purchase
• Existing quantity surveyor report, if there is one
• Property manager statement and year-end expense records
• Notes on any items removed, replaced, or scrapped during the year

If you already have all of that but still need the yearly numbers organised, the ATO rental property worksheet is the cleanest tax-time tool. If you want to see how those same deductions change your weekly holding cost, long-term cash flow, or future CGT outcome, move straight into the property investment spreadsheet.

Worked example: schedule vs worksheet vs full spreadsheet

Suppose an investor bought a Brisbane rental property during the year.

Known facts:

• Property built in 2012
• Purchased as an established property
• New split-system air conditioner and carpet installed after settlement
• Expected first-year depreciation estimate: $8,800
• Marginal tax rate assumed for illustration: 30%

What that means:

1. Estimated tax effect from depreciation alone is about $2,640 for the year
2. The investor still needs the annual rental records organised for the return
3. The investor may also want to understand whether the after-tax cash flow still works if interest rates stay high

Best tool split:

• If the investor mainly wants accountant-ready year-end numbers: use the ATO rental property worksheet
• If the investor wants to compare holding costs, land tax, CGT, and future projections as well: use the property investment spreadsheet

That is the core difference. The schedule supports the deduction. The worksheet supports the annual record-keeping. The full spreadsheet supports the scenario modelling you bring to your accountant.

Which tool fits your situation?

That is the framing to keep in mind as EOFY approaches:

• Calculator for the estimate
• Worksheet for the records
• Full spreadsheet for the scenario modelling
• QS report for the formal depreciation schedule

When the worksheet is enough, and when it is not

The worksheet is usually enough when you have one property, one financial year, and one main objective: hand your accountant a clean summary without rebuilding everything from scratch.

It is usually not enough when your questions start looking like this:

• Should I keep or sell in the next two years?
• What happens if rates stay higher for longer?
• How do land tax and depreciation interact across multiple properties?
• Is the next purchase still viable after I include CGT and holding costs?

At that point, you are no longer just documenting the year. You are weighing up investment questions to discuss with your adviser. That is where the property investment spreadsheet becomes the better next step.

What to do next

If you are still at the “is this worth claiming?” stage, start with the property depreciation calculator and estimate the likely deduction.

If you already know you need cleaner tax-time records for one property, go straight to the ATO rental property worksheet.

If you want the wider picture — depreciation, negative gearing, land tax, CGT, and long-range projections in one place — use the property investment spreadsheet.

That progression matches how most investors actually move through the problem:

1. estimate the depreciation
2. organise the annual records
3. use the full model when the question shifts from reporting to strategy

If you already know you are in steps 2 or 3, skip the calculator and choose the worksheet or full spreadsheet now.