One of the smartest ways to boost your investment returns is through property depreciation Victoria tax benefits. Many buyers focus on capital growth and rental yield. But they often overlook how claiming property depreciation in Victoria can improve cash flow and reduce tax bills.
At Quantum Buyers Agents, we help investors unlock every advantage. Understanding property depreciation in Victoria is key to smart investing.
What Is Property Depreciation in Victoria?
Property depreciation refers to the natural wear and tear of a building and its fixtures over time. Just like a car loses value, so does your investment property—particularly the building structure and its plant and equipment (like carpets, blinds, hot water systems, etc.).
The Australian Tax Office (ATO) allows investors to claim this loss in value as a tax deduction.
Two Main Types of Depreciation You Can Claim
- Capital Works (Division 43):
This relates to the structural components of the building (walls, roof, windows, etc.). For properties built after 15 September 1987, you can typically claim up to 2.5% per year over 40 years. - Plant & Equipment (Division 40):
These are removable items such as air conditioners, ovens, carpets, blinds, etc. The depreciation rates vary based on their effective life and installation date.
Note: Since 2017, plant & equipment deductions are mostly only available for new residential properties or if you install the items yourself.
Why Property Depreciation Matters for Investors in Victoria
In Victoria, especially in high-growth and newly developed areas like Melbourne’s outer suburbs or regional hubs (Ballarat, Geelong, Bendigo), depreciation benefits are often greater due to newer builds or recent renovations.
Claiming these deductions can result in thousands of dollars in annual tax savings, improving your property’s net return and allowing you to scale your portfolio faster.
Real Example: Tax Benefits for Property Investors in Victoria
Imagine you purchase a newly built townhouse in Victoria for $600,000. Based on a depreciation schedule (prepared by a qualified Quantity Surveyor), you may be eligible to claim around $8,000–$12,000 in the first year alone—money that directly reduces your taxable income.
How Quantum Buyers Agents Helps
At Quantum Buyers Agents, we do more than find great investment opportunities—we connect our clients with trusted Quantity Surveyors who create compliant depreciation schedules tailored to each property. Our vertically integrated model also allows us to assess build quality through our in-house licensed construction company, QBM Projects, giving you full transparency on what can be claimed and what might need fixing or upgrading.
We’ll help you:
- Identify high-depreciation potential properties
- Understand your cash flow and tax benefits before purchase
- Integrate depreciation planning into your overall investment strategy
Don’t Leave Money on the Table
If you’ve purchased an investment property in Victoria and haven’t had a depreciation schedule prepared, you could be missing out on thousands in deductions each year. Even older properties may qualify—especially if renovations have been done.
Ready to Maximise Your Investment Returns?
At Quantum Buyers Agents, we believe smart investing starts with smart planning. Contact us today to discover how you can leverage property depreciation as part of your overall investment strategy.
👉 Visit us at www.quantumbuyersagents.com.au to learn more or book a free consultation.
Disclaimer: This article is general in nature and should not be taken as financial or tax advice. Please consult a registered tax professional or accountant for advice tailored to your circumstances.
