What is a plant and equipment deduction?

One of the two categories outlined by the ATO for depreciation deductions is plant and equipment (division 40).

Depreciation can be claimed for wear and tear on assets in an income producing property that are easily removable or are mechanical in nature. Such items may include dishwasher, over, air-conditioners etc.

Plant and equipment assets are expected to decline in value as they are used over time. The amount of depreciation allowance is calculated based on the item’s effective life. All plant and equipment items have individual effective lives specified by the ATO and updated annually.

Deductible plant and equipment items include:

Legislation Change - Residential

In November 2017, the Federal Government changed depreciation legislation. The change means depreciation cannot be claimed on second-hand plant and equipment within residential investment properties purchased after 7:30pm on the 9th of May 2017.
New assets installed in an investment property can be claimed.

Residential Property (House)
  • Air conditioning units
  • Dishwasher
  • Light fittings
  • Oven
  • Window furnishings
  • Common property assets (gym equipment, pool cleaning & filtration, outdoor furniture)

Residential Property (House)
  • Air conditioning units
  • Garage doors
  • Light fittings
  • Security system
  • Solar panels
  • Pool cleaning and filtration systems


Commercial Property
  • Floor coverings
  • Cash register
  • Chairs and tables
  • Computer network equipment
  • Commercial ovens
  • Window coverings

* Lessee can claim depreciation on fitout assets


Rural | Agribusiness Property
  • Air compressor
  • Generators
  • High pressure pumps
  • Light fittings
  • Refrigeration
  • Winches


Why choose Acumentis

Have one point of contact for all your client’s property needs.

Knowledge and experience

Our registered team of professionally certified valuers are experts across commercialresidential and rural and agribusiness property types. We know what depreciable items to look for ensuring that you get a comprehensive ATO approved depreciation schedule prepared by our certified Quantity Surveyors.


We’ll provide you with one tax depreciation schedule that lasts up to 40 years of claim and the fee is 100% tax deductible. We can also undertake a retrospective tax depreciation schedule if you haven’t been claiming deductions so that you don’t miss the tax benefits.

National reach

Wherever you are in Australia a qualified Acumentis property professional is nearby. With over 300 property professionals working from 45 offices in metropolitan, regional and rural Australia our team have your property and tax depreciation needs covered.