The Horror of Missed Tax Depreciation

There are lots of things to be scared of this Halloween: ghosts, cobwebs, and creepy clowns. But if you’re a property investor, one of the scariest things of all might be the money you’re unknowingly throwing away.

I’m talking about Tax Depreciation.

Every year, I see landlords miss out on thousands of dollars in tax deductions simply because they never arrange a depreciation schedule. Think of it as leaving lollies at the front door, except instead of the neighbourhood kids helping themselves, it’s the taxman.

Depreciation is a non-cash deduction that recognises the wear and tear of your property and its fixtures. Without a proper schedule, you’re potentially leaving thousands of dollars on the table each year, money that could be back in your pocket, funding your next investment, paying down your loan, or simply easing cash flow.

If you’re unsure whether a depreciation report is worth obtaining, we can put you in touch with our recommended Quantity Surveyors. They’ll assess your situation and let you know if the report is worthwhile. If it’s not, they’ll advise you against proceeding at no cost, so you’re not left out of pocket.

Most offer a guarantee such as: “If we can’t double our fee in your first full year of deductions, we won’t charge for our service.”

Even if You’re Demolishing or Subdividing

One of the biggest misconceptions I hear from investors is: “Oh, I don’t need a depreciation schedule, I’m going to knock it down or subdivide.” The reality is that even if you’re planning demolition or redevelopment, a depreciation report is still recommended. Why? Because you may be entitled to scrapping deductions, that means claiming the value of the old fittings and fixtures you’re removing. In simple terms, you could claw back thousands before the bulldozers even arrive.

Three Tips for Investors on Depreciation

1. New Builds & Renovated Properties – If you’ve purchased a brand-new investment or one with significant renovations, a depreciation schedule is essential. The newer the property, the more deductions you can usually claim.
2. Older Homes Still Count – Many landlords think older properties aren’t worth it. That’s not true. Even older homes often have eligible deductions, especially if kitchens, bathrooms, or flooring have been updated over the years.
3. Subdivision & Redevelopment Sites – As mentioned, don’t skip it. Even if your long-term plan is redevelopment, you could claim valuable deductions in the meantime—and in some cases, immediate scrapping benefits when works begin.

At Centurion, we always remind our landlords: don’t be haunted by missed opportunities. We connect you with qualified quantity surveyors who prepare professional depreciation reports. It’s one of the simplest yet most powerful ways to maximise your returns.

So while others might be worried about things that go bump in the night, make sure your investment isn’t being quietly drained.

👉 This Halloween, do something less spooky: check if your property has a current depreciation schedule. If not, we’ll help you get one sorted, call us on 08 9454 2237 for all enquiries!