Thank you for your comment. If an asset has been completely replaced it would typically be considered an improvement which is depreciable and claimed over the effective life of the asset. In a residential property, switchboards, septic lines and pits are capital works assets (Division 43) and depreciated at 2.5% over 40 years.

The ducted heating unit is a plant and equipment asset (Division 40) that has an effective life of 20 years. Using the diminishing value method, the rate of depreciation is 10% and using the prime cost method, the rate of depreciation is 5%.

If an existing asset is simply repaired or had maintenance carried out, then it may qualify for an immediate deduction if the work is conducted after the property is rented.
You can read more about repairs, maintenance and capital improvements here.

It’s best to speak with your accountant to determine if the works you have carried out qualify for an immediate deduction.

For more information or to order or update your depreciation schedule please get in touch with BMT on 1300 728 726, via email at
info@bmtqs.com.au or Request a Quote.

Thanks,
The BMT Team.

I have replaced a ducted heating unit, would the depreciation rate be 25% based on the Diminishing Value (DV) method?

Many thanks
Danny

Thanks for your comment.

The effective life of carpet is eight years. You can use our free rate finder tool online if you’d like to learn more about the effective life of different assets https://www.bmtqs.com.au/depreciation-rate-finder

Thanks,
The BMT Team

Thanks for your comment.

Yes, the effective life of a split system air conditioning unit is 10 years, however whether you’re eligible to claim it will depend on when you purchased the property.

If you purchased and rented the property out before 7:30pm on 9 May 2017 then you may be eligible to claim the asset. However, if you purchased the property after this date, unfortunately you won’t be able to claim it.

Should you have further questions, please can contact our expert team on 1300 728 726 or visit our website at bmtqs.com.au for more information.

Thanks,
BMT Team

The depreciation rate for carpet will depend on the type of depreciation method you use as well as the date you purchased your property.
If you purchased the property before the 1st of July 2019, the depreciation rate will be 20 per cent based on the Diminishing Value (DV) method and 10 per cent based on the Prime Cost (PC) method.
If you purchased your property after this date, the depreciation rate will be 25 per cent based on the DV method and 12.5 per cent based on the PC method.

Thanks,
BMT Team

Many thanks,

B Collins