How Long Does a Depreciation Schedule Last? | 40-Year Tax Planning Guide
Understand the lifespan of your depreciation schedule, when updates are needed, and how to maximize benefits over the full 40-year period for optimal tax planning.
How Long Does a Residential Depreciation Schedule Last?
Your depreciation schedule lasts up to 40 years — but the practical lifespan depends on several factors including renovations, asset replacements, and changes in tax law. Here's everything you need to know about maximizing the longevity and value of your schedule.
The 40-Year Foundation: Division 43 Capital Works
Why 40 Years?
The ATO allows Division 43 capital works deductions for 40 years from the date of construction or major renovation. This creates a predictable, long-term tax benefit that forms the backbone of most depreciation schedules.
Key Timeline:
Year 1-40: 2.5% annual deduction available
After Year 40: Capital works depreciation exhausted
Division 40 Assets: Various timeframes (3-25 years typically)