Case Study

A House Built Before 1987 Purchased for $439,000

By ordering a Duo Tax depreciation schedule and claiming depreciation on his house that was built before 1987, Oliver went from being in a significant negative cash flow position to being in a far more manageable cash flow position.
He ended up saving $2,146 in his first year of owning the property!
Here's how.
A House Built Before 1987 Purchased for $439,000

The Numbers: Oliver’s Investment Property

Here are some figures regarding Oliver’s investment property:

Type of Purchase

He purchased a house originally built in 1980 for $439,000 one year ago and rented it out immediately.


His yearly rental amounted to $20,800 per year - which is a weekly rental of $400.


The property’s expenses amounted to $24,854, covering her interest repayments, management fees, rates and maintenance.

Oliver renovated the kitchen and bathroom and installed new blinds and floor coverings. As a result, he is able to claim depreciation on the property’s newly installed plant and equipment (Division 40) assets and the property’s capital works (Division 43) deductions

Without Depreciation vs With Depreciation Services

The following cost breakdown shows Oliver’s cash position with and without depreciation in his first year of owning the property. 

According to his Duo Tax depreciation schedule, Oliver could claim $5,800 depreciation in his first year. 

A House Built in 1980 Purchased for $439,00

Oliver’s numbers without a depreciation claim

Annual Rental Income
$400 x 52 weeks
Annual Property Expenses
Net Income (Pre-tax)
Income minus expenses: $20,800 - $24,854
Total Taxation Loss With No Depreciation
Tax Refund
Tax loss x tax rate: -$4,054 x 37%
Annual Costs of the Investment Property
Net income + tax refund: (-$4,054) + $1,500
Weekly loss

Oliver’s numbers with a depreciation claim of $2,146

Annual Rental Income
$400 x 52 weeks
Annual Property Expenses
Net Income (Pre-tax)
Income minus expenses: $20,800 - $24,854
Total Taxation Loss With Depreciation
Net income + depreciation: (-$4,054) + ($2,146)
Tax Refund
Total Taxation Loss x Tax Rate: -$9,854 x 37%
Annual Costs of the Investment Property
Net Income + Tax refund: (-$4,054) + ($3,646)
Weekly loss
Difference of $41 per week / $2,146 per year

Without depreciation, Oliver had to pay $49 out of his own pocket each week. However, by taking advantage of the Australian Tax Office’s tax breaks and making a depreciation claim, he significantly reduced that payment to $8 per week. 

This means that Duo Tax was able to save Oliver a total of $2,146 in his first year of owning the investment property. 

The great thing about his depreciation schedule is that it’s valid for up to 40 years! So, Oliver can continue saving money each year, as long as he continues to own the property.

Here’s How Much You Could Be Claiming

As you can see from Oliver’s scenario, tax depreciation schedules can make a significant difference in an investor’s cash flow each year.

However, if you’re still feeling unsure about committing to ordering a depreciation schedule, we have designed a tax depreciation calculator to help you estimate what you could potentially claim on tax depreciation.

This is an accounting tool designed to help estimate and calculate the declining value of capital works and plant and equipment assets and relies on accurate figures to present accurate estimations.
Rental Property Depreciation Calculator

Obtain your tax depreciation schedule in 3 easy steps.

Step 1
Qualify your Property
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Step 2
Order a Report
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Step 3
Claim Maximum Deductions
Within approx. 5 business days your report will be delivered to you and your accountant.
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