What This Calculator Does

Estimate your year 1 deduction in two minutes

The MCG Tax Depreciation Calculator helps Australian investment property owners quickly gauge whether commissioning a full depreciation schedule is worthwhile. It estimates two types of deductions: plant and equipment (Division 40), the depreciable items inside a property, and capital works (Division 43), the structural elements of the building itself.

Enter a few key details about your property, choose your marginal tax rate, and the calculator returns an estimated first-year deduction range plus a five-year projection of cumulative deductions and tax savings. Inputs are kept on your device, results are visible immediately, and there is no email wall.

Quick Reference

Express Calculator: Three yes or no questions. Use this if you want a quick gut-check before going further.

Detailed Calculator: Full property-specific inputs. Use this for a tailored year-by-year breakdown.

Email a copy: Optional. After running a Detailed calculation, send yourself a copy for your records or your accountant.

Tax Depreciation Calculator

Property Tax Depreciation

Choose your calculator

Pick the express assessment for a quick yes or no answer, or run the full detailed estimator. The detailed calc is the first of its kind in Australia, the only one that considers both pre-purchase and post-purchase renovations.

Express Assessment

Quick depreciation check

Question 1 of 3
Detailed Assessment

Detailed Tax Depreciation Calculator

Provide your property details below for a more accurate estimate

Property Type

Purchase & Construction

Location

Standard of finish

Low: simple construction, essential fixtures. Medium: contemporary build, average amenities. High: premium, luxury fittings.

Property size in m² (excluding land)

Approximate internal area of the property. Excludes garages, balconies, patios, carports and common areas. Typical sizes: House 140 m², Townhouse 115 m², Unit 80 m², Granny Flat 65 m².

Marginal tax rate (percent)

Snapped to the nearest ATO bracket: 19, 32.5, 37, or 45 percent.

Renovations

The MCG Tax Depreciation Calculator provides a general estimate of the depreciation that may be claimable on a property.

MCG Quantity Surveyors makes no guarantee on the accuracy or completeness of the MCG Tax Depreciation 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 Tax Depreciation 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 future property depreciation should not be seen as guarantees, and there is no assurance that the depreciation amounts suggested will be claimable.

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

How It Works

From inputs to estimate in three steps

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

1

Tell us about the property

Property type, size, location, year of construction, year of purchase, and any renovations. Most users complete this in under 90 seconds.

2

We estimate your deductions

The calculator combines MCG's build cost data with ATO effective lives and Division 43 capital works rates to produce a year by year estimate of your claimable deductions.

3

See your results instantly

Year 1 deductions, 5-year cumulative totals, and tax savings at your marginal rate. All visible immediately, no email gate. Optional email-a-copy if you want to keep a record.

The Two Deduction Types

Division 40 vs Division 43 in plain English

Australian property depreciation comes in two forms. Both are legitimate ATO deductions, both reduce your taxable rental income, and the calculator estimates both.

Division 40

Plant and equipment

The depreciable assets inside the property. Carpets, blinds, ovens, hot water systems, air conditioners, dishwashers, ceiling fans, and similar fixtures. Each item has an ATO-defined effective life and depreciates faster than the building itself.

  • Faster depreciation rates, larger early-year deductions
  • Limited on second-hand residential properties bought after 9 May 2017
  • Still claimable on brand new properties and on items installed by the current owner
  • Calculated using both prime cost and diminishing value methods
Division 43

Capital works

The structural elements of the building. Walls, roof, slabs, fixed cabinetry, kitchens, bathrooms, tiling, fencing and other permanent improvements. Depreciated at 2.5 percent per year over 40 years.

  • Available on properties built after 16 September 1987
  • Available on renovations completed after 27 February 1992 by any owner
  • Slower but more consistent year-on-year deductions
  • Often the larger of the two over the lifetime of the schedule
FAQ

Common questions about the calculator

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

Tax depreciation is a non-cash deduction that property investors can claim each year against the wear and tear of the building (capital works under Division 43) and the plant and equipment items inside it (Division 40). It reduces taxable rental income and improves cash flow without requiring any out-of-pocket spend in the relevant year.
Yes. The MCG Tax Depreciation Calculator is completely free and ungated. There is no email wall on the results, no payment required, and no obligation. The tool is provided so property investors can quickly estimate whether commissioning a full schedule is worth it for their situation.
Yes, in many cases. While capital works (Division 43) generally requires construction after 16 September 1987, most older properties have been renovated at some point. Renovations completed after 27 February 1992 by any owner remain claimable. The calculator accounts for both current-owner and prior-owner renovations.
Division 40 (plant and equipment) covers depreciable assets inside the property such as carpets, blinds, ovens, hot water systems and air conditioners. Division 43 (capital works) covers the structural elements of the building itself, including walls, roofs, kitchens, bathrooms and other permanent improvements. Division 40 generally depreciates faster, while Division 43 depreciates over 40 years at 2.5 percent per year.
The calculator gives a reasonable estimate based on the inputs you provide and MCG's industry build cost data. It is not a substitute for a full ATO-compliant tax depreciation schedule, which requires a site inspection by a registered Quantity Surveyor and includes itemised plant and equipment registers. Use the calculator to decide whether ordering a schedule is worthwhile.
Under ATO guidance (TR 97/25), if construction costs are not directly available from the original builder or developer, the cost estimates must be prepared by a suitably qualified person, which in practice means a Quantity Surveyor who is also a Registered Tax Agent. MCG QS is both. A schedule is a one-off cost and is fully tax deductible.
Yes, optional. After running a Detailed calculation you can choose to email yourself a copy of the results so you can revisit the breakdown or share it with your accountant. Email capture is entirely optional, the full results are visible immediately on screen.
No. The MCG Tax Depreciation Calculator is not endorsed by the Australian Taxation Office. It is an estimating tool to help investors gauge potential deductions. For an ATO-compliant schedule, MCG provides a fully itemised report prepared by a Registered Tax Agent and Certified Quantity Surveyor.
Ready For The Real Thing

Order an ATO-compliant 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.

Request a Quote 1300 795 170
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