Depreciation Calculator Australia (Div 40 & Div 43)
Calculate tax depreciation deductions for Australian investment properties and business assets. Generate year-by-year schedules using Division 40 (plant & equipment) or Division 43 (capital works) methods.
Based on 2025-26 ATO depreciation rules. Supports diminishing value and prime cost methods.
Original construction cost (not purchase price of land + building)
Year construction was completed (determines rate)
Residential: 2.5% | Non-residential (post-1992): 4%
Number of years to show (1-40)
Percentage used for private purposes (0 = fully deductible)
To calculate estimated tax savings at your marginal rate
Enter building details to calculate depreciation schedule
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| Feature | Division 43 (Capital Works) | Division 40 (Plant & Equipment) |
|---|---|---|
| What it covers | Building structure (walls, roof, foundations) | Removable assets (appliances, carpets, blinds) |
| Method | Straight-line only | Diminishing value OR prime cost |
| Rate | 2.5% residential / 4% non-residential | Based on effective life of each asset |
| Second-hand property | Can claim on remaining life | Cannot claim existing items (from 1 Jul 2017) |
| Professional report | Quantity surveyor schedule required | Can self-assess, QS recommended |
For Division 40 assets, you can choose between two depreciation methods. Once chosen, you cannot switch methods for that asset.
Diminishing Value Method
Rate = 200% / Effective Life
Annual deduction = Opening Written Down Value × Rate
Example: $10,000 asset, 5-year life: Rate = 40%. Year 1: $4,000, Year 2: $2,400, Year 3: $1,440...
Diminishing value gives larger deductions in the early years and smaller ones later. It never fully reaches zero, but the remaining value becomes negligible over time.
Prime Cost Method
Rate = 100% / Effective Life
Annual deduction = Original Cost × Rate (constant each year)
Example: $10,000 asset, 5-year life: Rate = 20%. Each year: $2,000 for 5 years.
Prime cost gives equal deductions each year. The asset is fully written off at the end of its effective life.
First-year pro-rata: In the first income year you hold an asset, the deduction is pro-rated based on the number of days you held it. For example, if you purchase an asset on 1 January, you can only claim approximately half a year's depreciation. This calculator shows full-year amounts — adjust your first year accordingly.
| Asset | Effective Life | DV Rate | PC Rate |
|---|---|---|---|
| Laptop / desktop computer | 4 years | 50% | 25% |
| Furniture (desks, chairs) | 10 years | 20% | 10% |
| Air conditioning units | 10 years | 20% | 10% |
| Carpets | 8 years | 25% | 12.5% |
| Hot water system | 12 years | 16.67% | 8.33% |
| Washing machine / dryer | 7 years | 28.57% | 14.29% |
| Blinds and curtains | 8 years | 25% | 12.5% |
| Fridge | 10 years | 20% | 10% |
| Oven / cooktop | 12 years | 16.67% | 8.33% |
| Motor vehicle | 8 years | 25% | 12.5% |
You can choose to self-assess a shorter effective life if you can demonstrate the asset will be used in a way that wears it out faster. See ATO effective life tables for the complete list.
If an asset is used partly for private purposes, you can only claim the business-use percentage. For example, a laptop used 60% for work and 40% for personal use can only depreciate 60% of its cost.
Assets costing less than $1,000, or those written down below $1,000, can be placed in a low-value pool: first year 37.5%, subsequent years 75% of the opening pool balance. Once added, items cannot be removed.
Small businesses with turnover under $10 million can instantly deduct the full cost of eligible assets costing less than $20,000 (for 2024-25 and 2025-26 years).
Use our dedicated IAWO calculator →What is the difference between Division 40 and Division 43 depreciation?
Should I use diminishing value or prime cost depreciation?
What is the depreciation rate for a residential investment property?
Can I claim depreciation on a second-hand property?
What is the low-value pool threshold?
Do I need a depreciation schedule from a quantity surveyor?
Tax Accuracy & Sources
Generates indicative depreciation schedules for Division 40 (plant and equipment) and Division 43 (capital works) using standard ATO methods. It does not replace a formal quantity surveyor report or account for first-year pro-rata in the actual lodgement year.