Case Study

Boosting Cash Flow on a 10-Year-Old Townhouse

After purchasing her townhouse for $600,000, homeowner Christina ordered a Duo Tax depreciation schedule and claimed depreciation on a property she purchased in 2014 but recently turned into an investment. This helped Christina start generating a small profit in her first year as an investor.
She saved $2,553 in her first year of claiming property tax depreciation!
Here's how.
A 10-Year-Old Townhouse

The Numbers: Christina’s Investment Property

Here are some figures regarding Christina’s investment property:

Type of Purchase

She purchased the property in 2014 for $600,000 and only started renting it out last year,


Her yearly rental amounted to $21,320 per year, which is a weekly rental of $410.


The property’s expenses amounted to $24,902, covering her interest repayments, management fees, rates, and maintenance.

While Christina couldn’t claim deductions for the depreciation on the property’s existing plant and equipment (Division 40 assets), she was able to claim depreciation on the property’s capital works (Division 43) deductions

Without Depreciation vs With Depreciation Services

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

According to her Duo Tax depreciation schedule, Christina could claim $6,900 depreciation in her first year of using the property as an investment.


A 10-year-old townhouse purchased for $600,000

Christina’s numbers without a depreciation claim

Annual Rental Income
$410 x 52 weeks
Annual Property Expenses
Net Income (Pre-tax)
Income minus expenses: $21,320 - $24,902
Total Taxation Loss With No Depreciation
Tax Refund
Tax loss x tax rate: -$3,582 x 37%
Annual Costs of the Investment Property
Net income + tax refund: (-$3,582) + $1,325
Weekly loss

Christina’s numbers with a depreciation claim of $6,900

Annual Rental Income
$410 x 52 weeks
Annual Property Expenses
Net Income (Pre-tax)
Income minus expenses: $21,320 - $24,902
Total Taxation Loss With Depreciation
Net income + depreciation: (-$3,582) + ($6,900)
Tax Refund
Total Taxation Loss x Tax Rate: -$10,482 x 37%
Annual Income from the Investment Property
Net Income + Tax refund: (-$3,582) + ($3,878)
Weekly income
Difference of $49 per week / $2,553 per year

Without depreciation, Christina had to pay $43 out of her own pocket each week. However, by taking advantage of the Australian Tax Office’s tax breaks and making a depreciation claim, she reduced her out-of-pocket expenses completely and started generating $6 of income per week.

Duo Tax saved Christina $2,553 in her first year of turning her property into an investment.

The great thing about her depreciation schedule is that it’s valid for up to 40 years. Christina can continue saving money each year, as long as she continues to own the property.

Here’s How Much You Could Be Claiming

As you can see from Christina’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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