Property-Specific Tax Depreciation – Koste Chartered Quantity Surveyors

1. Can I Claim Depreciation on an Airbnb or Short-Term Rental?

Short Answer:

Yes! Airbnb and short-term rental properties qualify for tax depreciation, including both Division 40 (Plant & Equipment) and Division 43 (Capital Works), provided they meet ATO rules.

Key Tax Depreciation Benefits for Short-Term Rentals:

✔ Full depreciation claims on brand-new assets & fit-outs.
✔ Accelerated deductions for furniture, appliances, and furnishings (Division 40).
✔ Depreciation applies even if the property is rented part-time.

📌 Get an Airbnb Tax Depreciation Report: Request a Quote

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2. How Does Depreciation Work for Serviced Apartments?

Short Answer:

Serviced apartments often qualify for higher tax depreciation due to their extensive furnishings and fit-outs. However, eligibility depends on ownership structure (individual vs. managed lease).

Why Serviced Apartments Have Higher Deductions:

✅ More Division 40 Assets – Items like TVs, beds, and white goods can be claimed.
✅ Building Structure (Division 43) Still Applies – Even in strata complexes.
✅ Commercial-Use Properties May Have Additional Benefits – Check with your accountant.

📌 Find Out What You Can Claim: Get a Free Estimate

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3. What If I Own a Dual-Key or Multi-Unit Investment Property?

Short Answer:

Dual-key properties and multi-unit investments typically qualify for higher depreciation claims because they contain multiple kitchens, bathrooms, and furnishings.

Why Multi-Unit Investments Are Ideal for Depreciation:

✔ Each unit’s assets (appliances, carpets, air con) can be claimed separately.
✔ Depreciation applies to common areas in strata complexes.
✔ Higher deductions compared to a standard single-dwelling investment.

📌 Maximise Depreciation for Multi-Unit Properties: Request a Quote

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4. Do Commercial Property Investors Get Different Depreciation Benefits?

Short Answer:

Yes, commercial properties have no restrictions on claiming depreciation, making them a high-value investment for tax savings.

Why Commercial Properties Have More Tax Depreciation Benefits:

✅ Full claims for both Division 40 & 43 – No ATO restrictions.
✅ Higher write-offs on plant & equipment used in business operations.
✅ Fit-out costs can be depreciated by either landlords or tenants.

📌 Get a Customised Commercial Report: Start Here

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5. How Do Depreciation Rules Differ for Industrial & Warehouse Properties?

Short Answer:

Industrial properties and warehouses have substantial tax depreciation benefits, particularly for specialised equipment and infrastructure.

Key Benefits for Industrial Properties:

✔ Depreciation on large-scale assets (machinery, racking, conveyor systems).
✔ Immediate write-offs for small business owners under ATO incentives.
✔ Capital Works (Division 43) deductions on structural improvements.

📌 Request a Custom Industrial Depreciation Report: Get a Quote

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6. Can I Claim Depreciation on Rural or Agricultural Properties?

Short Answer:

Yes, farm buildings, infrastructure, and equipment all qualify for depreciation deductions under Division 40 & 43.

Key Rural Property Depreciation Opportunities:

✅ Irrigation systems, silos, fences, and farm sheds can be depreciated.
✅ Farmhouses on income-producing land may qualify for deductions.
✅ Machinery and plant assets can be written off under accelerated ATO schemes.

📌 Find Out If Your Rural Property Qualifies: Talk to an Expert

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7. What Happens to Depreciation When I Sell My Property?

Short Answer:

Depreciation can affect your Capital Gains Tax (CGT) when selling, but there are ways to legally minimise tax liabilities.

Key CGT Considerations for Depreciation:

✔ Depreciation claims reduce the property’s cost base, increasing CGT exposure.
✔ However, a well-structured depreciation strategy can still lead to net tax savings.
✔ Koste helps investors balance tax depreciation and future CGT obligations.

📌 Book a CGT & Depreciation Strategy Call: Speak to an Expert