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Plant and Equipment, what can I deduct?

The plant and equipment ( division 40) are those items which are not classified as capital works ( division 43). These items are able to be depreciated at a much faster rate but vary between items as shown by the ATO effective life guidelines, these are items that have a shorter “wear & tear” effective life than the main building structure and as such are granted an accelerated rate of depreciation.

The capital works (division 43) is the actual main building structure part of the building and the amount of deduction is either 2.5% or 4 % depending on the age of the original construction or its use.

The following list of Plant & Equipment is not the entire list of depreciable items claimable but are the most common items found in 90% of investment properties. The effective lives are also different depending on when the assets were acquired as either before July 2004 or after.

As at Wednesday the 15th of Novemeber 2017, the new Treasuary laws amendment ( Housing Tax Integrity ) Bill 2017, owners of second-hand residential properties ( where contracts were exchanged after 7.30pm on the 9th of May 2017 ) will be no longer able to claim depreciation on Plant and Equipment assets, ie carpet, window blinds, ceiling fans etc. However you can still claim the Capital works ( division 43 ) the structural part of the property.

Specific commercial property has more specialised plant and equipment / effective lives and are not included.

Effective life before 1 July 2004 Effective life after 1 July 2004
Years Years
GENERAL ASSETS 10 10
Air conditioning, wall unit 10 10
Air conditioning, split system 10 10
Air conditioning, ducted 13.3 15
Carpet 10 10
Vinyl / Linoleum flooring 10 10
Floating timber floor 15 15
Rugs 7 7
Window blinds 20 10
Window curtains 6.66 6
Ceiling fans 5 5
Hotwater system, Gas 20 12
Hotwater system, Electric / Gas 20 12
Hotwater system , Solar 20 15
Vacuum cleaner ducted 10 10
Heaters, Electric / Gas 10 OR 15 15
Heaters, ducted gas 15 15
Door closers 10 10
Intercom 10 10
Security alarm 6.66 5
Smoke detectors 20 6
Fire extinguisher 13.33 15
Garage door motor 10 10
Garage door remotes 5 5
Freestanding wardrobes 13.33 13.33
Lifts 16.66 30
KITCHEN, BATHROOM & LAUNDRY ASSETS Effective life before 1 July 2004 Effective life after 1 July 2004
Years Years
Stove 20 12
Electric cooktop 12 12
Gas cooktop 12 12
Oven 12 12
Rangehood 12 12
Dishwasher 10 10
Fridge / freezer 13.3 12
Microwave 6.6 10
Clothes dryer 10 10
Washing machine 6.6 10
Garbage disposal unit / Insikerator 6.6 10
Exhaust / heat lamps 10 10
Spa bath pump 20 20
Shower curtain 2 2
Heated towel rail 10 10
SHARED COMMON ASSETS Effective life before 1 July 2004 Effective life after 1 July 2004
Lifts 16.6 30
Entry gate motor 10 10
BBQ freestanding 5 5
Intercom 10 10
Access control, entry, security 4 5
Door closers 10 10
Fire hose reels 20 10
Fire extinguishers 13.3 15
Fire indicator panel 20 12
Fire hydrant booster pump 20 25
Gym Equipment, cardiovascular 5 5
Gym Equipment, resistance 10 10
OUTDOOR ASSETS Effective life before 1 July 2004 Effective life after 1 July 2004
Years Years
Entry gate motor 10 10
Swimming pool filtration equip 13.3 12
Swimming pool cleaning equip 13.3 7
Swimming pool heater, electric /gas 13.3 20
Spa pool freestanding 20 17
Sauna heating assets 15 15
Watertanks, plastic, metal, concrete 30 / 25 /15 30 / 25 /15
Pumps, water, sewer 20 20
Irrigation Controller 5 5
Garden Shed 15 15