Property Depreciation Calculator Australia (Div 43 + Div 40)
Estimate an investment property's Division 43 capital works and Division 40 plant deductions, including first-year apportionment, low-value pooling and the residential second-hand asset restriction.
Div 43 Capital WorksDiv 40 Plant & EquipmentLow-Value Pool9 May 2017 Rule
Based on official ATO guidance and the 2025 effective-life determination. Use your records or an appropriately qualified person's estimate for formal claims.
01 —INPUTS
Original construction cost (Div 43 base). Leave 0 if no eligible building.
Use the start date on the capital works or quantity surveyor schedule. It determines the remaining deductible balance.
Copy the rate from your records — eligibility depends on construction start and use, not completion year.
Usually 1 July, or the date the property first became available for rent. Year one is apportioned by days.
Second-hand residential (acquired after 9 May 2017 7:30pm AEST) disallows Div 40 plant & equipment.
Typically 0 for a pure rental. Reduces deductions proportionally.
How this calculator differs from a generic depreciation tool
Our generic depreciation calculator handles a single asset at a time. This property calculator models the whole rental property in a unified schedule: one building, many plant items, pool math, and the second-hand residential restriction — all projected year-by-year with tax savings at your marginal rate.
9 May 2017 rule
The post-9 May 2017 second-hand residential rule
The Treasury Laws Amendment (Housing Tax Integrity) Act 2017 (Div 40-27) stops individual investors from claiming Division 40 depreciation on plant & equipment that was part of a second-hand residential property at the time of acquisition, where the contract date is after 7:30pm AEST on 9 May 2017. Division 43 capital works is unaffected. The restriction does not apply to:
→New properties — first sold as new
→Substantially renovated — properties
→Commercial buildings
→Assets personally purchased & installed — by the investor after acquisition
Select "Residential — Second-hand" in the property category dropdown above to see how this zeroes out Div 40 while preserving Div 43.
Plant & equipment paths
Low-value pool vs immediate write-off vs normal Div 40
Each plant & equipment asset takes one of three paths:
→Cost ≤ $300 and all four tests met — Immediate deduction in the year it first qualifies (s40-80(2)).
→"Allocate to low-value pool" ticked — Added to pool — 18.75% in year added, 37.5% DV after.
→Otherwise — Normal Division 40 using diminishing value (200% / life) or prime cost (100% / life).
FAQ
What's the difference between Division 43 and Division 40?
Division 43 covers eligible construction expenditure on capital works. Its 2.5% or 4% rate depends on matters including when construction commenced and the type and use of the works, so this calculator asks you to copy the rate from your records or quantity surveyor schedule. Division 40 covers eligible depreciating assets and uses diminishing value or prime cost over each asset's effective life.
How does the post-9 May 2017 second-hand residential rule work?
The Treasury Laws Amendment (Housing Tax Integrity) Act 2017 stops individual investors from claiming Division 40 plant & equipment deductions on assets that were part of a residential property at the time it was acquired, if the contract was entered into after 7:30pm AEST on 9 May 2017. Division 43 capital works is unaffected. The restriction does not apply to new properties, substantially renovated properties, or commercial buildings. Assets the investor buys and installs themselves after acquisition are also still deductible.
What is the low-value pool?
Under Subdivision 40-E, plant & equipment assets costing less than $1,000, or assets that have been written down below $1,000 using diminishing value, can be allocated to a low-value pool. The pool is depreciated at 18.75% in the year an asset is added and 37.5% (diminishing value) on the opening pool balance in subsequent years. Pooling simplifies recordkeeping but once allocated, assets cannot be removed.
What is the $300 immediate write-off?
Section 40-80(2) can allow an immediate deduction for an asset costing $300 or less and used mainly to produce non-business assessable income. It must also not be part of a set costing more than $300 or one of multiple identical or substantially identical assets whose combined cost exceeds $300. The calculator only applies it after you confirm all of those tests.
Where do I find effective lives for plant & equipment?
The Commissioner's current effective-life determinations are in the Income Tax Assessment (Effective Life of Depreciating Assets) Determination 2025. The applicable entry can depend on the asset and industry use. You can instead self-assess effective life under the statutory rules; retain evidence supporting the life used.
Do I need a quantity surveyor?
If actual construction expenditure cannot genuinely be determined, the ATO allows an estimate by an appropriately qualified person. Examples include an experienced builder, supervising architect, clerk of works or quantity surveyor. A quantity surveyor is therefore one accepted option, not the only accepted profession.
Tax Accuracy & Sources
Reviewed: March 2026 · Tax year: 2026-27
Combines Div 43 capital works, Div 40 plant & equipment (DV and PC), low-value pool and ≤$300 immediate write-offs into a single multi-year schedule, and applies the 9 May 2017 second-hand residential restriction.
Effective lives now come from the ATO's LI 2025/20 determination (which replaced TR 2022/1 in late 2025). Our guide covers the 2026-27 car limit, GST credit cap, and the prime cost vs diminishing value formulas.