Property Depreciation Calculator Australia (Div 43 + Div 40)
Build a complete investment-property depreciation schedule in one place. Combines the building's
Division 43 capital works deduction with every Division 40 plant & equipment line item
(carpets, appliances, A/C, blinds), a low-value pool, and the ≤$300 immediate write-off — with
the post-9 May 2017 residential second-hand restriction applied automatically.
Based on 2025-26 ATO rules. For a formal lodgement, get a quantity surveyor's schedule.
Original construction cost (Div 43 base). Leave 0 if no eligible building.
Pre-1985: no Div 43. 1985–Sep 1987: 4%. Post-Sep 1987 residential: 2.5%.
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.
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 the investor personally purchases and installs after acquisition
Select "Residential — Second-hand" in the property category dropdown above to see how this
zeroes out Div 40 while preserving Div 43.
Low-value pool vs immediate write-off vs normal Div 40
Each plant & equipment asset takes one of three paths:
Cost ≤ $300 and not pooled → immediate 100% write-off in year one (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).
Frequently asked questions
What's the difference between Division 43 and Division 40?
Division 43 covers the building structure itself (walls, roof, concrete, fixed improvements) and is depreciated on a straight-line basis at 2.5% per year for residential buildings completed after September 1987, or 4% for post-1992 non-residential. Division 40 covers plant & equipment — removable assets like carpets, blinds, ovens, air conditioners — depreciated over each asset's effective life using diminishing value or prime cost.
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) allows an immediate 100% deduction in year one for a depreciating asset used in producing non-business assessable income (such as rental income) where the asset's cost is $300 or less. This applies item-by-item: a $280 smoke alarm qualifies; a $350 item does not. Items used in a business have a different threshold (instant asset write-off rules).
Where do I find effective lives for plant & equipment?
The ATO publishes effective life determinations in Taxation Ruling TR 2022/1 (updated annually). Common residential rental items: carpet 8 years, curtains 6, dishwasher 10, oven 12, hot water system 12, split-system A/C 10, ducted A/C 20, fridge 12, washing machine 8. You may self-assess a shorter life if you can justify it, but the Commissioner's life is the safe default.
Do I need a quantity surveyor?
For Division 43 (capital works) on any property where you don't know the original construction cost, yes — a qualified quantity surveyor is the ATO-accepted source of a construction-cost estimate. Their fee is tax-deductible. For Division 40 plant & equipment and for buildings where you built or have documented construction costs, you can self-assess, but a professional schedule typically finds deductions investors miss.
Tax Accuracy & Sources
Reviewed: March 2026 · Tax year: 2025-26
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.