Australian Property Calculators

Australian property investors can claim tax depreciation deductions on two separate categories: Division 40 (plant and equipment, covering items like dishwashers, carpets, air conditioners, and hot water systems, depreciated at rates set by the ATO's effective life schedule) and Division 43 (capital works, being the building structure itself, claimed at 2.5% per year of the original construction cost over 40 years for buildings constructed after 15 September 1987). A $500,000 property with $100,000 in plant and equipment and $200,000 in construction costs can generate Division 40 deductions of $15,000–$25,000 in year one (using diminishing value method) and $5,000/year in Division 43 claims. Quantity surveyors charge $500–$800 to prepare a depreciation schedule, typically recovering their fee in first-year tax savings alone.

Land tax is a state and territory tax (not federal) that applies annually to the unimproved value of investment properties above state-specific thresholds. Primary places of residence are exempt in all states. In New South Wales, land tax applies at 1.6% on landholdings between $1,075,000 and $6,571,000, with a premium rate above that threshold; Victoria charges 1.3% above $300,000. Queensland uses a tiered rate starting at $500 flat fee plus 1 cent per dollar above $600,000. Importantly, thresholds are aggregated across all properties in a state owned by the same person; an investor with three Queensland properties each with $300,000 land value has a $900,000 combined holding, well above the threshold. Body corporate (strata title) fees cover building insurance, common area maintenance, utilities for common areas, and a mandatory capital works (sinking) fund. Average body corporate fees in Australian capital cities range from $2,000–$8,000/year for apartments, with older buildings often commanding higher fees due to maintenance and lift costs.

Council rates are charged by local governments based on the unimproved value of land, set annually. Average rates in capital cities run $1,200–$2,500/year for a typical investment property. Property management fees for fully managed services, including tenant search, routine inspections, maintenance coordination, and rent collection, typically cost 7–10% of weekly rent in most capital cities, plus a letting fee (often one to two weeks' rent) on each new tenancy. National average gross rental yield was approximately 3.9% in late 2024 (CoreLogic data), with Brisbane and Perth outperforming at 4.2–4.5% and Sydney underperforming at 3.2%.