Plant and Equipment Depreciation Rules (residential)

PLANT & EQUIPMENT CLAIMS (POST May 9 2017 Budget Night)

plant and equipment depreciation rules

There appears to be much misleading information circulating in regards to whether plant and equipment can be claimed on residential properties post-May 9 2017 Budget night. This has substantial negative financial impacts.

The general misleading advice includes “no ‘Residential’ second-hand ‘plant & equipment’ can be claimed via depreciation”. Incorrect. Wrong. Tut, tut, tut…this information is being circulated and passed on by ill-informed accountants, or self-educated property investors (looking in the wrong places for their financially important information).

This broad assessment without finding out details can cost the property investor thousands of dollars in forfeited tax claims and tarnish the reputation of the person providing such incorrect information without properly finding out the facts and treat every enquiry on a case-by-case basis.

Ask a Quantity Surveyor (specialised in tax depreciation) to clear up some confusion below:

We refer to ‘Treasury Laws Amendment (Housing Tax Integrity) Bill 2017’ in regards to the eligibility for second-hand depreciable asset allowances and their classification as ‘being deemed previously used’.

It should be noted that this ruling does not:

  • does not apply to Non-Residential properties and
  • there is NO change to ‘building/capital works claims’ either.

Plant and Equipment Eligibility Depreciation Rules:

CAN CLAIM (exceptions):

– If in a ‘corporate tax entity’ e.g. Company

– If in Large Super Fund other than a Self-Managed Super Fund (SMSF).

– If purchased/ Signed Sales Contract PRE 7:30pm 9 May 2017 (existing rules are grandfathered).

– If lived in (owner-occupier), then property became ‘income producing’ and moved out PRE 7:30pm, 9 May 2017.


– Any second-hand plant & equipment Post 7:30pm 9 May 2017

– If lived in (owner-occupier) and moved out > 1 July 2017

BWK Group helps many clients write off substantial taxes and improve clients’ yearly income tax returns via depreciation (cost-effectively, once-off fee).