A depreciation schedule details the wear and tear on a property’s building structure and assets, allowing investors to claim tax deductions. While not *required* to sell a property, having one can impact your capital gains tax (CGT) calculation when you realise a profit.
Currently in Melbourne, as of December 2025, depreciation schedules are most relevant when selling an investment property that has been previously rented. The schedule quantifies the depreciation you’ve claimed over the ownership period. This amount is added back to the property’s cost base when calculating CGT. In 2026, we’re seeing increased buyer scrutiny of property condition, particularly in the Eastern Suburbs where family homes near schools are in high demand. A well-maintained property, supported by depreciation records, can demonstrate responsible ownership. Preparing a schedule typically costs between $700 – $1,500, and while it doesn’t directly influence the sale price, it can simplify your tax obligations post-sale. Fletchers’ experience shows that buyers often favour properties with clear maintenance records, even if a depreciation schedule isn’t explicitly provided. The typical sales process in Melbourne, involving a 4-6 week campaign, doesn’t usually include the depreciation schedule as part of the marketing materials.
Understanding depreciation and having a schedule prepared can streamline your tax reporting when selling a Melbourne investment property.