Second Hand Property · Koste Knowledge Base

Can I claim second-hand plant and equipment in a residential rental property?

Published 26 June 2026 · Last updated 26 June 2026

Quick Answer

In many cases, investors cannot claim annual depreciation on second-hand plant and equipment already in a residential rental property acquired after the 2017 rule change. However, those assets may still be relevant for capital loss or CGT record purposes.

Second-hand plant and equipment includes previously used assets such as:

Existing appliances
Existing carpet
Existing blinds
Existing air conditioning
Existing furniture
Existing hot water systems
Existing ceiling fans

If an investor buys a second-hand residential property with these assets already installed, annual depreciation may be denied under the post-2017 rules.

However, this does not mean the assets are irrelevant.

They may still need to be:

Identified
Valued
Separated from capital works
Recorded for future disposal or capital loss review
Given to the accountant when selling

New assets purchased by the investor after settlement are treated differently and may be claimable.

Frequently Asked Questions

Can I claim second-hand appliances?

Annual depreciation may be restricted if they were already in the property when acquired.

Are the assets worthless for tax?

Not necessarily. They may still be relevant for capital loss or CGT record purposes.

Can I claim replacement assets?

Yes, new assets purchased by the investor may be claimable.

Should they be listed in the schedule?

Yes, where relevant, so the accountant has a clear record.

Can Koste.ai identify restricted assets?

Yes. Koste.ai can support a report that separates restricted and claimable items.

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