Depreciation lets eligible investors deduct the declining value of certain assets and building works over time, subject to legislation and property age. Newer builds often have larger schedules, but rules have changed in recent years for second-hand residential properties.

Quantity surveyors prepare depreciation schedules; your accountant applies them to your return. Do not guess meaningful figures—ATO compliance matters.

Depreciation improves after-tax cash flow for some investors but does not eliminate market risk or vacancy risk.

Consult a registered tax agent for advice specific to your entity structure and acquisition date.