Case Study

Brand New Office Purchased for $1,900,000

By ordering a Duo Tax depreciation schedule and claiming depreciation on his new office space, Blake could significantly increase his investment income and boost his cash flow position.
He ended up saving $24,600 in his second year of owning the property!
Here's how.
Brand New Office Purchased for $1,900,000

The Numbers: Blake’s Investment Property

Here are some figures regarding Blake’s investment property:

Type of Purchase

He purchased a 400 square meter office space within a building complex for $1,900,000 last year and rented it out immediately.


His yearly rental amounted to $137,280 per year - which is a weekly rental of $2,640.


The office space expenses amounted to $107,496, covering his interest repayments, management fees, rates and maintenance.

Commercial property owners can claim depreciation deductions for the building’s structure as well as any assets they own within their property. So Blake can claim depreciation on the plant and equipment (Division 40) assets that he owns and the offices’ capital works (Division 43) deductions

Without Depreciation vs With Depreciation Services

The following cost breakdown shows Blake’s cash position with and without depreciation in his second year of owning the office space. 

According to his Duo Tax depreciation schedule, Blake could claim $54,800 depreciation in his first year. 

A brand new office space purchased for $1,900,000

Blake’s numbers without a depreciation claim

Annual Rental Income
$2,640 x 52 weeks
Annual Property Expenses
Net Income (Pre-tax)
Income minus expenses: $137,280 - $107,496
Total Tax Payable With No Depreciation
Tax Refund
Tax loss x tax rate: $13,403 x 37%
Annual Income from the Investment Property
Net income + tax refund: ($13,403) + $0
Weekly income

Blake’s numbers with a depreciation claim of $54,800

Annual Rental Income
$2,640 x 52 weeks
Annual Property Expenses
Net Income (Pre-tax)
Income minus expenses: $137,280 - $107,496
Total Taxation Loss With Depreciation
Net income + depreciation: ($29,784) + ($54,800)
Tax Refund
Total Taxation Loss x Tax Rate: -$25,016 x 37%
Annual Income from the Investment Property
Net Income + Tax refund: ($29,784) + ($11,257)
Weekly income
Difference of $474 per week / $24,660 per year

Without depreciation, Blake was only generating $315 of profit from his office space investment. However, by taking advantage of the Australian Tax Office’s tax breaks and making a depreciation claim, he started generating $789 each week – which is $474 more than before his depreciation claim.

This means that Duo Tax was able to save Blake a total of $24,660 in his second year of owning the office space. 

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

Here’s How Much You Could Be Claiming

As you can see from Blake’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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