All you should know about Tax Depreciation Schedules

ATO Tax depreciation schedule can be termed as one of the most important tools for property investors in Australia. It helps in maximizing their return to a great extent. But, many people have yet to realize the umpteen advantages of ordering a tax depreciation schedule. It is worth noting that landlords will be able to claim back between ten to forty percent of an item’s value through depreciation. A depreciation schedule is expected to make a difference of thousands of Dollars thus enhancing your cash flow.

Let us find out more about tax depreciation schedule and how property owners will benefit from it:

What is Tax Depreciation Schedule?

As time passes, your property and the items inside your home tend to depreciate in value. The items and property depreciate with some wear and tear. The Australian Taxation Office or ATO has permitted property investors to seek claim of this decline in value as a tax deduction. This is termed as a non-cash deduction that implies that property investors are eligible to seek a claim without having to spend money on their own. However, a large number of owners do not get an ATO property depreciation schedule and they end up missing out on huge tax benefits.

How Does It Work?

When you get a tax depreciation schedule done for your property, you must divide it into two parts. It is known as capital works and plant & equipment. Capital works have emerged as a significant part of a depreciation schedule. It includes the original cost of the property along with extensions and renovations. Capital works also include several permanent assets like fencing, paving, and sheds, among others. Meanwhile, plants & equipment include temporary assets. These assets are removable and may include items such as carpets, flooring, appliances, and furnishings. When you make a claim, you should be able to recognize the value of different parts of the property and how much they have depreciated. It may vary across objects. The main motive of a tax depreciation schedule is to gather these details in one report. It will help you get an idea of how much you may claim. When you complete the property depreciation report, your property must be inspected by an expert who shall assign a value to each asset.

Benefits of Tax Depreciation Schedule

You will receive tremendous benefits from a tax depreciation schedule. The schedule will help in enhancing cash flow by reducing the tax amount you may have to pay on the property. Many property investors buy an investment property considering its several depreciation benefits.


You should order a tax depreciation schedule without fail every year. If you are not aware of the time, the tax depreciation schedule must be ordered before the end of the financial year i.e. June 30th. You may hire an expert to prepare your tax depreciation reports. The expert will help in getting your depreciation schedule sorted prior to this date. It will help you clam all that you will be eligible for and enhance your tax deductions. It is worth noting that a tax depreciation schedule comes with a one-off cost. And, it will last forty years. It is done to ensure that property investors and owners make accurate claims.

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