Tax Depreciation | 6 min read
Renovated your investment property? When to update your depreciation schedule
A renovation is one of the clearest signs that an existing tax depreciation schedule may no longer match the property. Before EOFY, investors should check whether new works, removed assets or replacement items need to be recorded.
Renovations can change the depreciation picture
A kitchen, bathroom, extension, deck, flooring upgrade, new air conditioning system or major refurbishment can change what your accountant has available to claim.
Some works may form part of capital works. Some new items may be depreciating assets. Some removed items may also need to be considered depending on the facts.
If the old report was prepared before the renovation, it may no longer describe the property your accountant is now working with.
What investors commonly miss
Investors often keep using the original schedule after completing works because they assume the accountant can simply add the invoices.
That can be fine for simple items, but larger works usually need clearer classification, timing and supporting records.
A quantity surveyor review helps separate building works, eligible plant and equipment, external works and items that need accountant treatment.
Why renovation detail matters
A renovation is rarely one depreciation line. A kitchen can involve cabinetry, benchtops, appliances, plumbing, electrical work, flooring and painting, each of which may need to be understood differently.
BWK Group case-study examples involving established homes and apartments show that later renovations are often the reason an older property still produces meaningful depreciation value.
The more clearly the renovation story is recorded, the easier it is for the quantity surveyor and accountant to avoid treating useful works as vague background information.
When to request a review
Request a review before tax time if the renovation was material, involved multiple trades, changed the layout, added usable space or replaced major assets.
Send the existing depreciation schedule, renovation invoices, photos and any builder scope. BWK Group can confirm whether an update or new schedule is the right pathway.
The goal is practical: give your accountant a current report that reflects the property as it exists now.
Next step
Want to see what a professional report includes?
If you are not ready to request a quote, request sample report formats first. You can review the structure, assumptions and level of detail before deciding which report is right.
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FAQs
Common questions
Do renovations always require a new depreciation schedule?
No. Minor purchases may not require a full new report, but material renovations should be reviewed because they can affect capital works, plant and equipment and the accuracy of the existing schedule.
What renovation records should I keep?
Keep builder invoices, trade invoices, appliance receipts, before-and-after photos, plans, completion dates and any notes showing when the property was available for rent.
Can BWK Group update an existing report prepared elsewhere?
BWK Group can review the existing report and property changes, then advise whether an update, addendum or new depreciation schedule is appropriate.