Claiming depreciation on plant and equipment assets only applies when
you build a new home for investment. In 2017, the government passed
legislation changes so that investors buying a second-hand property
could not claim plant and equipment deductions if they'd been used.
How to make claims
Luckily, there are people who are skilled at determining what counts as capital works or the useful life of assets. A quantity surveyor who will do all of this work for you for a fee.
Not only will they provide a report covering the claimable depreciation,
but most quantity surveyors will go one step further and send it
directly to your accountant, who will run the claims for you. It
couldn't get any easier!
Quantity surveyors know everything about fixed assets, obsolescence,
depreciation expenses, depreciation schedules and balance sheets, taking
these fiddly calculations off your to do list.
Prime cost method vs diminishing value method
Of course, to add another level of complexity to plant and equipment
assets depreciation, the ATO allows for two depreciation methods. The
two different methods are the prime cost method and the diminishing value method.