AU Australia property term
Property Depreciation Schedule
Australia-wide
Plain-English definition
A report estimating eligible capital works and depreciating-asset deductions for an income-producing property over applicable periods.
Why this matters to a foreign buyer
A quantity surveyor may prepare the report, but the ATO rules decide what can be claimed, including limits for second-hand residential assets. Obtain Australian tax advice for ownership, residency and record-keeping consequences.
A property depreciation schedule is a specialist report estimating potential capital-works and depreciating-asset deductions for an income-producing property. The report supports tax calculations; it does not itself determine what the owner may claim.
What the schedule covers
A schedule may separate construction-related capital works from eligible depreciating assets and project deductions over the relevant periods. The property’s age, improvements, ownership history and asset details affect the result.
Australian tax rules control the deduction
ATO rules, including restrictions affecting second-hand residential assets, determine deductibility. Ownership structure, tax residency, private use and record keeping can also change the outcome.
When investors obtain one
Investors commonly commission a schedule after purchase or renovation and keep it with their property tax records. A qualified quantity surveyor may prepare the estimate where construction costs are not otherwise available.
Frequently asked questions
Does a depreciation schedule guarantee a tax deduction?
No. The schedule estimates eligible amounts, but Australian tax law and the owner’s circumstances determine what can be claimed.
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