Property Tax Changes · Koste Knowledge Base

Why are depreciation records more important under CGT indexation?

Published 26 June 2026 · Last updated 26 June 2026

Quick Answer

Depreciation records become more important under CGT indexation because the property's cost base and capital works history need to be understood clearly. Missing schedules can make CGT calculations harder and may lead to poor record keeping.

If CGT calculations place more emphasis on the indexed cost base, investors need better records.

Depreciation records help show:

Capital works deductions
Construction cost estimates
Renovation history
Division 40 asset values
Excluded second-hand assets
Property improvement history
Common property deductions
Year-by-year claims

Without these records, accountants may need to reconstruct historical claims and costs.

Koste.ai can help keep depreciation and cost base records connected to the property.

Frequently Asked Questions

Do I need old depreciation schedules?

Yes, they may help with CGT review.

Does Division 43 matter?

Yes, capital works deductions may affect cost base.

Does Division 40 matter?

It may be relevant, especially for asset separation and disposal records.

What if records are missing?

A cost base review may help reconstruct available information.

Can Koste.ai store these records?

Yes. Koste.ai should keep property reports connected to the asset.

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Written by Koste Team · Koste Chartered Quantity Surveyors · AIQS Member · RICS Member · TPB Registered · 1300 669 400 · info@koste.ai