Is a depreciation schedule worth it for an Australian investment property?

Mechanic: a quantity surveyor (QS) physically inspects (or desktop-reviews) the property + lists every depreciable item under Div 43 (capital works, building, structural improvements) + Div 40 (plant + equipment, appliances, carpet, blinds, fittings). The schedule applies the ATO-mandated diminishing-value or straight-line method per item across each item's effective life. Output: a year-by-year deduction table you give to your accountant.

Numerical example: $700K post-1985 IP with original construction value $400K. Div 43 at 2.5% straight-line = $10K/year deduction for 40 years from construction. Plus Div 40 on existing plant + equipment items = ~$3-5K/year for the first 5-10 years (declining). Combined ~$13-15K deduction × 37% marginal rate = $4.8-5.5K/year tax saving. Schedule cost: $600-900. Payback: 1-2 months of tax savings.

2017 Div 40 restriction (Treasury Laws Amendment (Housing Tax Integrity) Act 2017): for residential properties acquired after 9 May 2017, only the original purchaser can claim Div 40 on plant + equipment. Subsequent purchasers can't. Div 43 is unrestricted (still claimable by any owner). So second-hand properties bought post-2017 lose ~$3-5K/year of Div 40, schedule still pays back, just less.

When NOT worth it: extremely small or low-value IPs (<$300K), brand-new 'tier-1' construction where the developer's depreciation schedule is included in the sale, second-hand pre-1985 properties (no Div 43, only existing-Div-40 if first-purchaser). For everyone else: order the schedule + claim. Schedules are tax-deductible themselves under s40-880 (capital allowance for blackhole expenditure).