Depreciation – Div 40 vs Div 43

There are two main types of depreciation which are:

1. Plant & Equipment (known as Division 40 Depreciation)
2. Capital Works (known as Division 43 Depreciation)

Common Division 40 Items are:

• Chairs
• Carpet
• Blinds
• Cooktops

Common Division 43 Items are:

• Tiling
• Kitchen
• Vanity

So what’s the difference?

1. Properties – Division 40 items are smaller items that can be individually identified and removeable whereas Division 43 items are usually to do with the structural elements of a building that are permanent
2. Depreciation Rate – Division 40 items can be depreciated much faster than Division 43 items

These treatments may vary depending on the status of your rental property i.e. currently vacant, available for rent, closed for renovation.

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