The Federal Government legislated new laws for properties purchased after the 9th of May 2017 that ultimately affect depreciation claiming for second-hand plant & equipment (division 40).* Brand new properties rented immediately are not affected. The plant & equipment in a property must now be brand new and never used before (and the property rented prior to the 30th of June 2017 if purchased second-hand) to be eligible to claim for depreciation. If the property is purchased second-hand after the 9th of May 2017, you cannot claim any of the existing depreciation in the property. However, any brand new items you install in the property for rental purposes will be claimable, provided the item was installed after moving out of the property. The second scenario is where you purchased a brand new property, if you live in the property for any amount of time before renting, the plant & equipment items inside are now considered second-hand and therefore no longer eligible to be claimed.
*Does not affect company or managed funds.
The legislation only affects plant and equipment (division 40) which means that all residential properties may still claim capital works (division 43).