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Estimate your renovation cost and first-year depreciation

Define the property profile, add the renovation items, see the results.

1Define property profile
2Add renovation items
3View results
Total Renovation Value
$0
First Year Depreciation
$0
ImprovementTotal CostDepreciation RateFirst Year Depreciation

The MCG Renovation Calculator provides a general estimate of renovation costs and first-year depreciation that may be claimable on an investment property.

MCG Quantity Surveyors makes no guarantee on the accuracy or completeness of the calculator's results, and disclaims any liability for any explicit or implicit statements or omissions.

The calculator's outcomes are based on various assumptions, and may not align with your individual situation.

By using the MCG Renovation Calculator, you acknowledge the necessity of conducting your own analysis and obtaining independent advice before acting on any information it provides.

The calculator's results regarding depreciation should not be seen as guarantees, and there is no assurance that the depreciation amounts suggested will be claimable.

The MCG Renovation Calculator is not endorsed by the Australian Taxation Office.

From renovation plan to deduction estimate in 60 seconds

The calculator is built on MCG Quantity Surveyors industry build cost data, the same dataset underlying our ATO-compliant tax depreciation schedules.

1

Describe the property

Pick the property type (House, Townhouse or Unit), the size band (Small, Medium or Large) and the standard of finish (Low through Prestige). The combination determines per-square-metre and per-unit base rates.

2

Add renovation items

Add as many renovation items as you like from the list of 12 common upgrades, including kitchens, bathrooms, flooring, paint, ducted air conditioning and hot water systems. Each item is calculated independently.

3

Read the results

See the estimated total renovation value, the depreciation rate per item and the total first-year depreciation deduction. Export to CSV to share with your accountant or quantity surveyor.

Renovations on investment properties are usually depreciable

Australian investors can claim deductions for the wear and tear of renovation works under two ATO frameworks. The calculator estimates the first-year deduction across both.

Capital works (Division 43)

Structural elements such as new kitchens, new bathrooms, fixed cabinetry, walls, ceilings, flooring and tiling depreciate at 2.5% per year over 40 years.

  • Available on renovations completed after 27 February 1992 by any owner
  • Slower but consistent year-on-year deductions
  • Often the larger of the two over the lifetime of the schedule

Plant and equipment (Division 40)

Depreciable items installed during the renovation, like carpets, blinds, curtains, ducted air conditioning, hot water systems, ovens and dishwashers depreciate over each item's effective life.

  • Faster early-year deductions, larger first-year cash flow benefit
  • Limited on second-hand residential properties bought after 9 May 2017
  • Always claimable on items installed by the current owner

Common questions about the renovation calculator

If your question is not covered here, get in touch and we will help.

The calculator gives an indicative estimate based on MCG Quantity Surveyors industry build cost data, weighted by property type, size and standard of finish. For project-specific cost advice or an ATO-compliant tax depreciation schedule, MCG can prepare a full report based on a site inspection.
Yes. The MCG Renovation Calculator is completely free to use, with no email gate, no signup and no obligation. The tool is built and maintained by MCG Quantity Surveyors as a free resource for Australian property investors and their advisers.
Renovations to an investment property are typically depreciable as either capital works (Division 43) or plant and equipment (Division 40). The calculator estimates the first-year deduction by applying an effective depreciation rate to each renovation item based on the relevant ATO methodology.
For investment properties, the ATO (TR 97/25) generally requires construction cost estimates to be prepared by a suitably qualified person where original costs are not available. In practice, this is a Registered Tax Agent and Certified Quantity Surveyor. MCG QS is both. The calculator is an estimating tool only and does not replace a full schedule.
Most renovation work to an income-producing property is depreciable, including new kitchens, bathrooms, flooring (carpet, timber), window furnishings (blinds, curtains), painting, lighting, ducted air conditioning and hot water systems. Each item depreciates at its own ATO effective life and method.
The calculator uses gross floor area (GFA) benchmarks from MCG industry data. A small house has a different GFA assumption to a medium townhouse, which feeds into per-square-metre costs for any renovation item that is area-based (carpet, paint, lighting, ducted air conditioning).
Yes. The Low / Medium / High / Prestige finish standards reflect different per-square-metre or per-unit costs for materials, labour and inclusions. A Prestige kitchen, for example, is materially more expensive than a Low standard kitchen.
Capital works renovations (Division 43) completed by any owner after 27 February 1992 generally remain claimable by the current owner of an investment property, provided the construction date and cost can be established. A Quantity Surveyor can identify and value these for you.

Order an ATO-compliant tax depreciation schedule

The calculator gives you an estimate. A full schedule, prepared by a Certified Quantity Surveyor and Registered Tax Agent, gives you the itemised deduction figures your accountant needs to lodge with the ATO. From around $650, fully tax deductible.