Tax Savings Write Offs · Koste Knowledge Base

Can I claim a new air conditioner in my investment property?

Published 26 June 2026 · Last updated 26 June 2026

Quick Answer

A new air conditioner installed in an income-producing investment property may be depreciable. The claim depends on whether it is a new asset, how it was installed, and whether the property is used to produce rental income.

Air conditioning can be a valuable depreciation item.

The tax treatment may depend on:

Whether the unit is new
Whether it replaces an existing unit
Whether it is ducted or split-system
Installation costs
Whether building works were required
Income-producing use
Private use, if any

A split-system air conditioner may be treated differently from parts of a larger building services system. Installation may also include electrical work, brackets, pipework or structural elements.

Second-hand systems already in a residential property at purchase may be restricted under the 2017 rules. However, a new system purchased by the investor after settlement may still be claimable.

Frequently Asked Questions

Is an air conditioner a depreciating asset?

It often is, but the exact treatment depends on the system and installation.

Can I claim installation costs?

Installation costs may form part of the asset cost or capital works depending on circumstances.

What if the air conditioner was already there when I bought the property?

Second-hand residential asset rules may restrict annual depreciation.

Should I update my schedule?

Yes, if the asset was added after the original schedule.

Can Koste.ai help?

Yes. Koste.ai can help record new asset information for the depreciation review.

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