Introduction to Tax Depreciation

If you’re exploring avenues to optimise your property investment returns, you’re in the right place. This month, Teach Me About Property (TMAP) had the privilege of hosting Roy Halabi from GPS Guardian Property Specialists as our March guest speaker on our Monthly Group Session. His insights into the area of Tax Depreciation were nothing short of enlightening, and we’re here to share those golden nuggets with you.

What Is Tax Depreciation?

In simple terms, tax depreciation is the gradual wear and tear of a property and its fixtures over time, which can be deducted from your taxable income. Think of it as a sweet tax break that reduces your taxable income, making property investment even more appealing. Surprisingly, despite its benefits, a staggering 80% of property investors aren’t maximizing or are completely missing out on these deductions!

The Mechanics of Tax Depreciation

Types of Depreciable Costs

Tax depreciation primarily covers two types of costs: the wear and tear of fixtures and fittings, and capital works deductions, also known as the building allowance. These allow investors to reduce their taxable income by accounting for the property’s depreciation and the cost of construction for properties built after 1985.

The Value of Depreciation

One of the most attractive aspects of tax depreciation is that it’s a non-cash deduction. This means you don’t have to spend any additional money to benefit from it. Additionally, with a modest investment of $490 (including GST) for a tax depreciation schedule, which itself is 100% tax-deductible, it’s a win-win situation.

Eligibility and Claims

Does Your Property Qualify?

Good news! Virtually all property types, including residential, commercial, and industrial, are eligible for tax depreciation. It’s not just the new properties that qualify; older properties can also benefit, especially if they’ve been renovated or extended.

Maximising Your Depreciation Benefits

To make the most out of your depreciation, obtaining a professionally prepared depreciation schedule from qualified quantity surveyors is key. Moreover, this comprehensive document breaks down the depreciable amount for fixtures, fittings, and the building itself, ensuring you claim the maximum amount possible.


Tax depreciation is an invaluable tool for property investors, offering significant financial benefits. By understanding and utilising these deductions, you can significantly reduce your holding costs and improve your investment returns. Don’t be part of the 80% missing out on these opportunities. Take action, seek professional advice, and watch your property investment flourish.

Thank you, Roy Halabi and the GPS team, for shedding light on this topic and empowering our TMAP community. Our members can access recordings of previous Monthly Group Sessions on Kajabi, and those looking to learn more can contact us anytime.