How Does a Granny Flat Affect My Depreciation?

Quick Answer

Adding a granny flat can significantly enhance your property's depreciation claims under Division 43 for capital works and Division 40 for plant and equipment. This addition typically allows you to claim depreciation on the new construction cost, potentially reducing your taxable income. However, specific rules apply, and it's advisable to consult a Chartered Quantity Surveyor to maximise your deductions.