Investors often think that because their rental property is older that there is no worthwhile depreciation or allowances that can be claimed.

This is definitely not the case.

Division 43 allows deductions on capital works on residential properties from 18th July 1985. This generally refers to the ‘shell’ of the building and is usually referred to as ‘Building Write Off’ allowance. Older properties usually have amounts that can be claimed by virtue of any building work done to the property since that time. This could take into account common things like kitchen and bathroom renovations, extensions, reroofing, restumping and the like. 

The amount claimable is 2.5% on a straight line basis over 40 years. This means that a property built in 1985 is still capable of being claimed up until 2025, and any improvements up to 40 years following the date of those improvements.

Other components of the building referred to generally as ‘plant & equipment are claimable as Depreciable items under divisions 40 of the Income Tax Act.

These allowable deductions cover numerous items such as floor and window coverings, appliances, hot water units, mechanical fans, electric pumps, removable light shades, fluorescent lights, heating, cooling, security and fire alarms to name but a few.

There is no age restriction on construction/ installation date for these items and therefore they can be claimed regardless of the age of the property. Income tax Ruling TR 2000/18C10 although not exhaustive, provides a good indication as to the items that can be claimed.

For further information contact Abbcon Associates on 03 9873 7144 or email us at we will be happy to give you an obligation free quote or answer any questions about your particular property.