Koste Chartered Quantity Surveyors 1300 669 400  |  info@koste.ai

Tax Depreciation Basics · Koste Knowledge Base

What is Division 40 depreciation?

Quick Answer

Division 40 depreciation generally relates to plant and equipment assets that decline in value over time. In property, this can include appliances, carpet, blinds, air conditioning, furniture and commercial fit-out assets.

Division 40 is the part of the tax rules that deals with depreciating assets.

In property, Division 40 assets may include:

  • Ovens
  • Dishwashers
  • Carpet
  • Blinds
  • Curtains
  • Air conditioning
  • Hot water systems
  • Ceiling fans
  • Furniture
  • Security systems
  • Commercial equipment
  • Office fit-out assets
  • Hospitality equipment
Division 40 assets are generally separate from the building structure. They are depreciated over their effective life or another applicable method.

Important note: For second-hand residential investment properties acquired after the 9 May 2017 changes, depreciation on existing previously used Division 40 assets may be restricted. However, new assets purchased by the investor may still be claimable.

Commercial property may have broader Division 40 opportunities.

Read Full Article Free Calculator
Division 40plant and equipmentdepreciation

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