What Is a Tax Depreciation Report and Why Do You Need One?
If you own an investment property, claiming tax depreciation is one of the most effective ways to reduce your taxable income. A Tax Depreciation Report, also known as a depreciation schedule, outlines the deductions you can claim for the wear and tear of your property and its fixtures over time.
In this blog, we’ll explain when and why you need a tax depreciation report—and how it can improve your bottom line as a property investor.
What Is a Tax Depreciation Report?
A Tax Depreciation Report is a detailed schedule prepared by a qualified quantity surveyor. It lists all depreciable assets in your investment property and calculates their declining value over time, allowing you to legally maximise your property tax deductions.
These reports include:
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Capital works deductions (for structural items like walls, roofs, and fixed assets)
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Plant and equipment deductions (for removable items like carpets, appliances, and blinds)
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Year-by-year breakdown of deductions over the property’s life span
When Do You Need a Depreciation Schedule?
1. After Purchasing an Investment Property
Once you’ve bought a rental or commercial property, order a depreciation schedule as soon as possible. It’s valid for up to 40 years and can be backdated if you missed previous claims.
2. When Renovating or Adding New Assets
If you’ve renovated kitchens, bathrooms, or installed new fixtures, a new or updated tax depreciation report ensures those additions are included in your deductions.
3. For End-of-Year Tax Returns
At tax time, your accountant will need your tax depreciation schedule to include it in your annual return. It helps reduce taxable income and can increase your return significantly.
Why Is a Tax Depreciation Report Important?
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✅ Legally reduces your taxable income
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✅ Can save thousands of dollars annually
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✅ Maximises returns on investment properties
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✅ Required documentation for ATO compliance
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✅ Helps identify missed deductions from previous years
Who Prepares a Tax Depreciation Report?
Only a registered quantity surveyor can legally prepare an ATO-compliant property depreciation schedule. At Diamond Property Inspections, we connect you with trusted professionals who ensure every eligible asset is accurately documented.
📞 Call 1300 368 000 or visit www.diamondinspections.com.au to request your Tax Depreciation Report today.
Diamond Property Inspections – Maximise your return. Minimise your tax.
