Depreciation and Building Write-off Checklist
The following checklist prepared as a guide for claiming
depreciation for residential rental property assets.
The checklist represents the ATO’s current views on which assets can be depreciated under
Division 40 and which assets may be eligible for the building write-off under Division 43.
It also provides the effective life of those assets which may be depreciated.
The following is an explanation of the key terms used in the checklist:
♦ Fixed – means annexed or attached by any means (e.g., screws, nails, bolts, glue,
adhesive, grout, cement, etc.) but not merely for temporary stability.
♦ Freestanding – means items designed to be portable or movable (e.g., furniture).
Any attachment to the building is only for the item’s temporary stability.
♦ Other than freestanding – means items fixed to the premises that are not designed to be
portable or movable. The test is not whether the item is removable, even if the attachment
is slight, but whether the inherent design and function of the item is such that it is intended
to remain in place for a substantial period of time.
♦ Division 43 – indicates that a building write-off deduction may be available (generally at
the rate of 2.5%).
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