Key points


Michael buys a brand-new house for $730,000


His property is rented for $650 a week or $33,800 per annum


BMT uncovers $15,500 in depreciation deductions in the first full financial year claim

New house depreciation breakdown

New house purchased for $730,000 Without depreciation With depreciation
Annual rental income $33,800 $33,800
Annual property expenses $40,000 $40,000
Pre-tax cash flow (income less expenses) -$6,200 -$6,200
Depreciation claim $0 $15,500
Total taxation loss (pre-tax cash flow + depreciation) $6,200 $21,700
Tax refund (tax loss x tax rate of 37%) $2,294 $8,029
Annual costs (pre-tax cash flow + tax refund) -$3,906 $1,829
Weekly cost -$75 per week +$35 per week
Difference of $110 per week
Assumptions and disclaimer

Case studies and figures are based upon tax depreciation schedules completed by BMT Tax Depreciation and do not represent any particular person or investment property scenario. The information provided is a general guide and does not constitute financial, legal or taxation advice. All figures are supplied as examples and may not represent your personal circumstances.

You acknowledge and agree you must undertake your own analysis and obtain independent legal, financial and taxation advice before using, relying or acting on any information supplied on this website.

Neither BMT Tax Depreciation, nor its Directors, Shareholders or Advisors make any representation or warranty as to the accuracy or completeness of information found in these typical examples. Nor will they have any liability to you or any other party for any representations (expressed or implied) contained in, or any omissions from, that information.

The tax depreciation deductions in this case study have been calculated based on the diminishing value method of depreciation and are based upon a first full year of ownership.

Claiming depreciation

Organising a BMT Tax Depreciation Schedule couldn't be easier.

1: Get a Quote

Request a quote for your residential tax depreciation schedule.

2: Provide details

We’ll collect property details then contact your property manager or tenant to arrange access to complete a property inspection.

3: Claim deductions

Your depreciation schedule will be ready within 7 days of receiving all information. We can even forward it to your accountant to save you time.