Smart technology in short-term rentals: what you can claim
Smart locks, security cameras, noise monitors, smart thermostats, and other connected devices have become standard in professionally operated short-term rentals. All of these are Division 40 plant and equipment and can be claimed as tax depreciation.
Smart locks
Smart locks — keypad entry, Bluetooth-enabled, or remotely managed — are a standard investment for Airbnb properties. They are Division 40 plant and equipment with an ATO effective life of approximately 5 years.
If a single smart lock costs less than $1,000, it qualifies for the low value pool at an 18.75% (first-year) depreciation rate.
Security cameras
Security cameras (outdoor surveillance, front door cameras) are Division 40 assets:
- ATO effective life: approximately 4 years
- Cameras costing under $1,000 go in the low value pool
- The camera mounting hardware may be a separate small asset or part of the camera system
Smart speakers and voice assistants
Amazon Echo, Google Nest, and similar devices are Division 40 assets with effective lives typically around 4-5 years. Many Airbnb hosts include them as guest amenities.
Wi-Fi routers and networking equipment
Wi-Fi routers and networking equipment essential for the short-term rental operation are Division 40 plant and equipment — typically with effective lives of 5-7 years for networking equipment.
Smart thermostats and home automation
Smart thermostats, automated lighting systems, and similar building automation assets are Division 40. The ATO's effective life for these devices depends on the specific asset — ask your quantity surveyor.
Apportionment
All these assets must be apportioned if the property has private use. Smart technology exclusively for guest use (a lockbox code system, for example) is arguably 100% rental use; shared technology (like a router you use when you stay there) requires apportionment.
Immediate deduction possibility
Smart home accessories costing less than $300 that have an effective life of less than 1 year can be claimed immediately. Most smart locks and cameras cost more than this threshold and must be depreciated.