How Does Depreciation Generally Apply to Second-Hand Investment Properties?
The tax treatment of depreciation changed following federal budget measures in 2017. A registered tax agent or quantity surveyor can help you understand what may apply to your specific property.
Depreciation is a tax concept that relates to the decline in value of certain assets over time. The tax treatment of depreciation for residential investment properties changed following federal budget measures introduced in 2017.
Because depreciation rules are complex and depend on individual circumstances, property investors usually seek advice from a registered tax agent or accountant to determine how depreciation may apply to their property. Some investors also obtain depreciation schedules from quantity surveyors, which accountants may use when preparing tax returns.
A qualified tax professional can advise on: whether depreciation may apply, how property improvements may be treated, and how tax law changes affect second-hand properties.
This information is general in nature and does not constitute tax advice. Mortgage brokers are not authorised to provide tax advice. Investors should seek advice from a registered tax agent or accountant regarding depreciation and other tax matters.
You may wish to speak with a licensed mortgage broker to assess your personal circumstances.
This is general information only and does not constitute tax advice. Depreciation rules are complex and depend on individual circumstances. Speak with a registered tax agent and consider engaging a quantity surveyor for a formal assessment.
Sources: ATO, Rental Properties 2025; ATO, Guide to Depreciation for Residential Properties; Treasury, 2017 Budget Measure — Plant and Equipment Depreciation.
