Tax Depreciation Basics

Is my property too old to depreciate?

A common misconception of property depreciation is in relation to age of the investment property. Although it is true that the age of the property does affect tax depreciation, there is always something to be claimed in the property.

Going back to basics for a moment, the main component of tax depreciation is the capital works allowance. This element is claimed over a 40 year period. So if your property was constructed after 1979 there will be an amount to be claimed under this capital works allowance.

Regardless of the age of the property there are elements under the Division 40 allowance that can be claimed. These include items such as air-conditioning units, hot water units, light fixtures, etc. And if the property is furnished, all the furniture can be depreciated. These items combine to produce quite a large depreciable component.

The last and most important inclusion in this section is in relation to refurbishments. If the property has undergone renovations, whatever amount has been spent then forms part of the depreciation entitlement as a capital works allowance. Many older properties have undergone work to keep them up to standard. This can be claimed!

So if you have bought an older property, have a look around. There will definitely be something to claim. And if you are still unsure, give SF Property Solutions a call on (07) 3103 3982, or email


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