If you want to squeeze every possible saving out of your investment property before 30 June, tax depreciation is one of the easiest wins available to investors. Yet many Australian property owners still leave thousands of dollars on the table simply because they do not review their depreciation schedules in time.
With the end of the financial year approaching, now is the ideal time to review your position, organise your documentation, and ensure your tax depreciation strategy is up to date before the EOFY rush begins.
Why May matters for tax depreciation
By May, most investors have a clearer picture of their rental income and expenses for the year. It is also early enough to organise a new depreciation schedule or update an existing one without the delays that often happen closer to 30 June.
Quantity surveyors are typically less booked during this period, which can mean faster turnaround times and less pressure when preparing for tax time.
Review your tax depreciation schedule
Start by checking whether your existing schedule reflects any upgrades, repairs, or additions completed throughout the year.
New carpets, appliances, window furnishings, or renovations may create additional deductions that were not previously included in your report. Reviewing your tax depreciation schedule before EOFY can help ensure these opportunities are not missed.
Organise a tax depreciation schedule if you do not already have one
Many investors are unaware that a professionally prepared tax depreciation schedule can generate significant deductions over the life of a property.
A certified quantity surveyor can inspect the property and prepare a compliant report outlining eligible depreciation claims for both the building structure and depreciable assets.
Update your depreciation schedule after renovations
If renovations or structural improvements have been completed, your schedule should be updated accordingly.
This may allow you to claim the write-off of removed items while also capturing depreciation on newly installed assets or improvements.
Check eligibility before making assumptions
Some investors incorrectly assume older properties are not eligible for depreciation benefits. However, certain properties built before 1987 may still qualify for structural deductions depending on the work completed over time.
Before ruling anything out, it is worth seeking advice from a qualified professional who understands current tax depreciation rules and reporting requirements.
Getting your tax depreciation sorted in May helps reduce last-minute stress and allows you to approach EOFY with greater clarity and confidence.
Disclaimer:
This article provides general information only and does not constitute legal, financial or professional advice. The information in this article was accurate to the best of our knowledge at the time of writing; however, laws, regulations and market conditions may change. Readers should consider their own circumstances and undertake their own due diligence before making any decisions, and seek appropriate professional advice where necessary.