Why It Matters

Hospitality is the most plant-heavy commercial vertical in Australia.

A typical pub, club or restaurant carries an enormous density of commercial kitchen equipment, bar fit-out, refrigeration, gaming machines, AV systems and dense interior fit-out. Add the periodic refurbishment cycle (every 5-10 years) that hospitality venues run to stay competitive, and you get one of the highest Division 40 shares of any commercial property type, often 40-60% of total deductions.

A specialist QS site inspection captures items often missed: combi ovens and salamanders, glass washers, beer line refrigeration and tap systems, gaming machine surveillance, function room AV and lighting rigs, dance floors, outdoor heating, awnings, bottle shop drive-through canopies, cool rooms and walk-in freezers.

MCG has prepared depreciation schedules for freehold and leasehold pubs, RSL and licensed clubs, restaurants, cafes, function venues, gaming venues, and pub-accommodation hybrids across Australia.

Quick Reference
Why hospitality runs the highest Div 40 shares

Commercial kitchen: Single largest Div 40 category. Dense, high-value equipment.

Bar & refrigeration: Beer systems, glass washers, cool rooms, taps, ice machines.

Gaming (where applicable): Each EGM is a separate depreciable asset. Significant.

Refurb cycles: 5-10 year fit-out refresh creates ongoing depreciation events.

Why Use MCG

What you get from a hospitality-specialist QS

Six things a generic accountant or self-prepared estimate cannot match.

On-site QS inspection
A registered tax agent QS attends the venue, ideally during off-peak so kitchen, bar and gaming room can be properly accessed.
Kitchen and bar specialism
Dense, high-value equipment categories that generic schedules underestimate. We itemise every piece.
40-year compliant schedule
Full ATO-compliant report showing both Prime Cost and Diminishing Value, year-by-year, every asset.
Refurb & scrapping handled
When the venue refurbs, we handle scrapping schedules for retired assets and add the new fit-out.
2 to 3 week turnaround
From site inspection to delivered schedule. Larger multi-bar, gaming and accommodation venues 4-6 weeks.
Registered tax agent
MCG is a Tax Practitioners Board registered tax agent firm. The schedule itself is tax deductible.
What's Depreciable

Depreciable assets typical to a hospitality venue

Two broad asset groups: front-of-house and back-of-house.

Front of House

Bar, gaming, dining and function fit-out

The customer-facing assets that drive the venue feel

  • Bar fit-outBar counters, beer line refrigeration, tap systems, glass washers, ice machines, post-mix systems, back-bar refrigeration.
  • Gaming machinesEach electronic gaming machine separately depreciable. Owner-funded surveillance and gaming room HVAC also captured.
  • Dining and lounge fit-outFurniture (tables, chairs, banquettes), carpet, lighting, decorative finishes, custom joinery.
  • Function room and entertainmentAV systems, lighting rigs, sound systems, dance floors, staging, partitioning.
  • POS and paymentsTills, scanners, EFTPOS, ordering screens, table-side payment devices.
  • Outdoor entertainmentPatio heating, awnings, outdoor lighting, beer garden fit-out. Awnings often Division 40, structures Division 43.
  • Bottle shop / drive-throughShelving, refrigeration, bottle shop POS, drive-through window equipment, security.
Back of House

Commercial kitchen and operations

Single largest Div 40 category in most hospitality schedules

  • Cooking equipmentCombi ovens, salamanders, char grills, fryers, pasta cookers, induction tops, woks, pizza ovens.
  • Cool rooms and freezersWalk-in cool rooms, walk-in freezers, blast chillers. High-value, separately depreciable.
  • Dishwashing and warewashingPass-through dishwashers, glass washers, pre-rinse, drying racks, prep sinks.
  • Exhaust and fire suppressionKitchen exhaust hoods, fans, ductwork, Ansul fire suppression systems.
  • Prep and storageStainless steel prep benches, refrigerated prep tables, dry storage shelving, fly screens.
  • Coffee and beverageEspresso machines, grinders, water filtration, soda guns, beverage fridges.
  • Office, security and amenitiesOffice fit-out, security/CCTV, alarm systems, staff amenity fit-out, customer toilet fit-out.
How It Works

From enquiry to lodged schedule in 4 steps

A standard MCG hospitality depreciation engagement, end to end.

Send venue details
Address, freehold or leasehold, settlement date, venue type (pub, club, restaurant), gaming entitlements, recent refurb history.
QS site inspection
A registered QS attends the venue (preferably off-peak), inspects kitchen, bar, gaming, function spaces, cool rooms and outdoor areas.
Schedule prepared
40-year compliant report itemising kitchen, bar, gaming, function and structural elements separately. Both depreciation methods.
Lodge with your tax return
Hand the schedule to your accountant or use it for self-prepared returns. Schedule fee is itself tax deductible.
Mike Mortlock, Co-Founder and Managing Director of MCG Quantity Surveyors
Reviewed by

Mike Mortlock

Co-Founder and Managing Director, MCG Quantity Surveyors

Mike Mortlock is a registered tax agent and the co-founder of MCG Quantity Surveyors. He sits on the AIQS Advisory Board and the PIPA Board. MCG has prepared depreciation schedules for freehold and leasehold pubs, RSL and licensed clubs, restaurants, cafes, function venues, gaming venues, and pub-accommodation hybrids across Australia.

Registered Tax Agent (TPB) AIQS Advisory Board PIPA Board
Last reviewed: 26 April 2026 · Specialism: hospitality property depreciation, pub and club QS reports
FAQ

Common questions on hospitality depreciation

The questions pub operators, club managers and restaurant owners ask MCG most often.

A pub, club or restaurant depreciation schedule is a 40-year ATO-compliant report itemising every depreciable asset in a hospitality property. It captures commercial kitchen equipment, bar fit-out, gaming room equipment (where applicable), function space, cool rooms, bottle shop fit-out, outdoor entertainment areas, and the building structure. Hospitality is one of the most plant-rich commercial verticals.
Hospitality is unusually plant-heavy. Division 40 share typically runs 40-60% (compared to 18% for a bare warehouse), driven by commercial kitchen equipment, bar refrigeration and tap systems, gaming machines (in pubs and clubs), AV and entertainment systems, and dense fit-out. Restaurants and cafes without gaming sit at the lower end of this range; pubs and clubs with gaming and large kitchens at the upper end.
Yes, where the venue owns the machines. Each electronic gaming machine is Division 40 plant and equipment with a typical effective life around 8-10 years. Where machines are on a finance lease or operating lease, treatment differs and the lease should be analysed by your accountant.
Yes, comprehensively. Ovens, fryers, grills, salamanders, pasta cookers, char grills, combi ovens, dishwashers, glass washers, cool rooms, freezers, refrigerated prep benches, exhaust hoods, fire suppression, and prep benches are all itemised individually. Commercial kitchens often represent the single largest Division 40 category in a pub or restaurant schedule.
No. Liquor licences are intangible assets and not depreciable under Division 40 or 43. They do however form part of the cost base of the going-concern business for CGT purposes. See our capital gains tax reports service for the related calculations.
Yes, where you (the tenant operator) own the fit-out and equipment. Tenant-owned plant and equipment is depreciable in your name. Tenant-installed leasehold improvements (fit-out, cool rooms, bar build) are depreciable under Division 43 over the lease term or the asset's effective life, whichever is shorter.
Standard turnaround is 2 to 3 weeks from site inspection. Larger venues with gaming, multiple bars, function spaces and accommodation may take 4 to 6 weeks. Best to schedule the inspection during off-peak hours when the kitchens and bars can be properly accessed.
Talk To An Expert

Maximise the deductions on your venue

Talk to an MCG hospitality specialist on 1300 795 170. Registered tax agents and quantity surveyors, working across Australia.

Request A Quote 1300 795 170
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