ATO Tool vs Quantity-Surveyor Reports for Australian Owners

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Choose the free ATO tool when you already hold reliable cost and asset information and only need the calculations; consider a quantity-surveyor report when an inspection, construction-cost estimate or help with renovations, missing records or ownership splits is needed.[1][10]

U.S. 1040 tax form with 2021 planner on a pastel pink background, symbolizing tax season.

ATO calculations versus a supplied schedule

A property depreciation schedule sets out potential annual deductions for an income-producing property, separated into capital works and plant and equipment.[4][10] The ATO tool instead produces calculations from information you enter yourself.[1]

ATO depreciation and capital allowances tool

  • What it is: A free online ATO calculator covering rental-property depreciation, capital works, multiple assets, partnership shares, prime-cost and diminishing-value comparisons, and balancing adjustments.[1]
  • Suited to: Taxpayers who already have the asset and construction-cost information and do not need an inspection.[1]
  • Limits: The tool excludes specified immediate deductions and complex claims involving certain intangible assets.[1] Calculations can be saved through myGov linked to the ATO, or downloaded and sent to a tax agent.[1]

Supplied quantity-surveyor schedule

  • What it is: A paid report prepared after the provider collects property information, often including an on-site inspection and liaison with the property manager.[4][5]
  • Suited to (provider descriptions): Properties where renovations, missing construction records or ownership splits complicate costs or allocations.[3][10]
  • Limits: Fees, turnaround and terms differ by provider and are generally set by quote.[4][6][9]

Duo Tax describes a schedule as support for accurate claims rather than a promise of tax savings, and says your accountant or registered tax agent decides what you can claim.[10]

Second-hand assets in residential rentals: the ATO rule

The ATO explains that, for residential rental properties, you generally cannot claim the decline in value of second-hand depreciating assets that came with the property if you acquired it under a contract entered into after 7:30pm (AEST) on 9 May 2017.[2] The ATO lists exceptions, including some excluded entity types and properties used in carrying on a business.[2]

  • Division 40 (depreciating assets): Plant and equipment such as hot water systems, air conditioning units, blinds and curtains. This is the category the second-hand restriction affects.[2][4]
  • Division 43 (capital works): The building structure and fixed improvements. TDA says the second-hand restriction does not affect capital-works deductions.[4][6]
  • Excluded entities: TDA lists corporate tax entities, super funds other than SMSFs, public unit trusts and managed investment trusts as excluded from the restriction.[6]
  • New and renovated assets: TDA says new assets installed by the current owner and substantially renovated properties may still qualify for plant-and-equipment deductions.[6]
  • Earlier purchases: Washington Brown says properties bought before 9 May 2017 and available for income-producing use before 1 July 2017 were not affected.[3]

Before ordering, give the provider the contract date, owner type and renovation history, and ask how the report separates previously used assets, newly installed assets and capital works.[2][6]

Provider-by-provider comparison

The descriptions below summarise what each provider says about itself. They are not independent rankings.

Washington Brown

  • Output: A schedule that the provider says considers effective-life adjustments, past renovations, previous-owner works, periods you lived in the property and furniture packages.[3]
  • Suited to (provider description): Renovated properties and joint ownership; Washington Brown says joint-ownership and split reports are included as standard where applicable.[3]
  • Price: Quote-based; the provider also offers a free online calculator.[3]

BMT Tax Depreciation

  • Output: An inspection-based schedule with a 40-year forecast, Division 40 and Division 43 deductions, both depreciation methods, and split schedules for co-owned properties.[4]
  • Suited to (provider description): Owners anywhere in Australia; BMT says it offers an Australia-wide service and uses its own inspection staff.[4]
  • Price and timing: Quote-based. BMT says the schedule is ready within 7 days of receiving all information, and that it will not charge if it does not find double its fee in first-full-financial-year deductions.[4]

The Home Inspection Hub

  • Output: An information sheet, property-manager liaison, an on-site inspection, a qualified quantity-surveyor report, and an emailed report and receipt.[5]
  • Suited to (provider description): Owners who want the provider to coordinate access, and renovated properties that may need a second schedule.[5]
  • Price and timing: Quote-based. The provider says it can prepare a second schedule after renovation works costing more than $30,000, and that reports take about 3 business days after the inspection.[5]

TDA Quantity Surveyors

  • Output: A residential schedule prepared by a registered quantity surveyor after property review.[6]
  • Suited to (provider description): Owners who want a published starting price and guidance on second-hand assets.[6]
  • Price and timing: TDA publishes a starting price of $450 plus GST for residential schedules; the final fee requires a fixed-fee quote.[6] TDA says reports take 3 to 5 business days once the inspection is done, and that it will not charge if it cannot deliver at least double its fee in first-full-financial-year deductions.[6]

Acumentis

  • Output: Acumentis explains that a schedule identifies deductions for capital works and plant and equipment.[7]
  • Price: Not published on the reviewed page; request a quote.[7]

Depreciator

  • Output: A residential schedule ordered online, with a no-obligation quote or estimate.[8]
  • Credentials (provider statement): Depreciator publishes Registered Tax Agent number 26741008 and says its staff are members of the Australian Institute of Quantity Surveyors.[8]
  • Price: Quote-based. For residential properties built after September 1987, Depreciator promises twice its fee in first-full-year deductions or a free schedule.[8]

Tax Schedule

  • Output: Consultation, paperwork, calculations and a qualified-quantity-surveyor report that the provider describes as ATO compliant.[9]
  • Price: A free quote or estimate; the provider says it has no hidden fees but publishes no amount.[9]

Duo Tax

  • Output: A year-by-year report for your accountant that separates capital works from plant and equipment.[10]
  • Suited to (provider description): Properties with missing construction records; Duo Tax says a qualified quantity surveyor can estimate construction costs where original records are missing.[10]
  • Price: Not published on the reviewed page; request a quote.[10]

Matching common complications to an option

  • Joint ownership: The ATO tool calculates partnership shares, while Washington Brown and BMT say they supply split reports for co-owned properties.[1][3][4]
  • Renovations: BMT says substantial renovations may need a new schedule and cosmetic changes an update.[4] The Home Inspection Hub offers a second schedule for renovations over $30,000.[5]
  • Missing construction records: A quantity surveyor can estimate construction costs where records are missing; the ATO tool relies on the figures you enter.[1][10]
  • Second-hand residential purchases: Under the ATO rule described above, confirm with your adviser which assets fall under the restriction before relying on any plant-and-equipment figure.[2]

Fee-back promises and starting prices

BMT, TDA and Depreciator each publish a fee-back promise tied to first-year deductions:

  • BMT: double its fee in first-full-financial-year deductions, or no charge.[4]
  • TDA: at least double its fee in first-full-financial-year deductions, or no charge; TDA also says it will tell you if a schedule would not pay for itself.[6]
  • Depreciator: twice its fee in first-full-year deductions, or a free schedule, for residential properties built after September 1987.[8]

These are commercial promises by each provider, not independent evidence of tax savings.[4][6][8] TDA’s $450 plus GST is a published starting price, not a quote; confirm the final fee in writing.[6]

When to order and what to gather

BMT recommends ordering once the property is genuinely available for rent and soon after settlement.[4] Providers commonly ask for:

  • settlement date and purchase price;
  • the date the property became income producing;
  • property-manager or tenant contact details for the inspection; and
  • details of improvements and additions.[4]

Also disclose the contract date, owner type, joint ownership, renovations, previous-owner works, periods you lived in the property, furniture packages and missing construction records.[2][3][10]

What to give your accountant or registered tax agent

  • ATO tool: The downloaded calculations, or send them directly to your tax agent from the tool.[1]
  • Commercial schedule: The report and receipt, plus the settlement date, purchase price, income-producing date and improvement history you gave the provider.[4][5]
  • Method choice: Ask whether prime cost or diminishing value suits you; Duo Tax describes prime cost as spreading deductions evenly and diminishing value as front-loading them.[10]
  • Earlier returns: Duo Tax says a schedule may help claim missed deductions from previous returns, subject to ATO rules and professional advice.[10]

Quote checklist

  • Cost: Total fee, whether GST is included, payment timing and quote expiry.
  • Timing and inspection: Turnaround, whether an on-site inspection is included, and any travel or rescheduling charges.
  • Cancellation: Cancellation steps and refund conditions.
  • Deliverables: Split reports, renovation treatment, later updates and responses to accountant queries.[3][4][5]
  • Fee-back promise: Measurement period, property criteria, exclusions and how to claim the no-charge outcome.[4][6][8]
  • Second-hand assets: How the report applies the ATO second-hand asset rule to your contract date and owner type.[2]

References

  1. Depreciation and capital allowances tool | Australian Taxation Office (ato.gov.au)
  2. Depreciating assets in rental properties | Australian Taxation Office (ato.gov.au)
  3. Property Depreciation Schedules – Washington Brown (washingtonbrown.com.au)
  4. Depreciation Schedule | BMT Tax Depreciation (bmtqs.com.au)
  5. Tax Depreciation Schedule – The Home Inspection Hub (thehomeinspectionhub.com.au)
  6. Depreciation Schedule Example: New vs Purchased – TDA (tdaqs.com.au)
  7. What is a tax depreciation schedule? – Acumentis (acumentis.com.au)
  8. Tax Depreciation Schedule | Depreciator (depreciator.com.au)
  9. Tax Schedule – Tax Depreciation Consultants (taxschedule.com.au)
  10. Depreciation Schedule For Investment Property – Duo Tax (duotax.com.au)
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