Rental Property Depreciation Calculator
Estimate the depreciation you could claim on your Australian investment property — both the building (Division 43) and the fixtures and fittings (Division 40).
Tip: enter a construction cost, or the internal size in m², so we can estimate the building value.
General information only
This calculator and page provide general information, not tax or financial advice. Estimates are simplified and can't be lodged. Confirm your position with a registered tax agent, and get a tax depreciation schedule from a qualified quantity surveyor.
How the depreciation calculator works
Depreciation lets property investors claim the wear-and-tear of a building and its fixtures as a tax deduction over time. There are two parts, and this calculator estimates both:
- Division 43 — capital works (Division 43). The structure itself, claimed at 2.5% of the original construction cost per year for 40 years (for residential property where construction began after 15 September 1987). Enter your build cost, or we estimate it from the property's size and type.
- Division 40 — plant and equipment (the fixtures). Removable assets like carpet, blinds, ovens, dishwashers and air conditioners, claimed as they decline in value over their effective lives.
Your first-year estimate combines both, adjusted for your ownership share.
The 2017 rule that changes everything for established properties
Since 9 May 2017, if you buy an established (second-hand) residential property, you generally can't claim Division 40 depreciation on the fixtures that were already in it. You can still claim Division 43 on the building, and Division 40 on any brand-new assets you buy for the property yourself. If you bought before that date, or the property was brand new when you got it, the old rules apply. This calculator applies that test based on your answers — which is why an established post-2017 purchase shows $0 for fixtures.
What this calculator can't do
It's a quick estimate built on simplified assumptions — an estimated build cost where you don't supply one, a ballpark fixtures value, and a blended decline rate. It can't see your actual property, it doesn't itemise every asset's effective life, and it can't be lodged with the ATO. For that you need a tax depreciation schedule from a qualified quantity surveyor (such as BMT, Duo Tax or Washington Brown). The schedule fee is generally tax deductible, and a good one typically pays for itself. Once you have it, ledger.rent helps you record it and track the deductions each year so nothing is missed at tax time.
Related reading: our guide to rental property tax deductions, the free rental property expense spreadsheet, and our explainer on repairs vs capital.
Frequently asked
Frequently asked questions
Calculator and content by ledger.rent. Last updated May 2026. General information, not tax advice. Estimates only — get a tax depreciation schedule from a qualified quantity surveyor and confirm your position with a registered tax agent. Build-cost benchmarks are 2026 industry averages and will change.