The contract date and the date the rental began, a list of what was in the property at purchase, and the receipt for each asset bought new for the rental.

Can you depreciate what was already in a rental you bought?

Q: What does it look like in dollars?

A unit bought with a $1,200 oven and carpet already in it has a claim of $0 for them. A new $900 dishwasher bought for the rental has its decline in value worked from that $900.

Published 19 Oct 2026

No, not for an individual who is not in the business of letting. A fitting that was already used, such as an oven in the house when it was bought, gets no depreciation deduction. This is the law as read on 19 October 2026.

What is the rule?

The ATO calls these second-hand depreciating assets. They are things already installed or used by someone else, or in your own home, before the rental. The ATO's second-hand depreciating assets page says that in most cases nothing is claimed for them after 1 July 2017.

Which date matters?

Used assets were claimable if bought before 7:30 pm on 9 May 2017 and installed in the rental before 1 July 2017. A home bought before that time and rented out before 1 July 2017 also kept the claim. Anything later gets none.

What can be claimed?

A new asset, bought for the rental and used there for the first time. It is not second-hand, so its decline in value is claimed. The ATO says this holds for a new asset bought after moving out of a home.

What does it look like in dollars?

Take a unit bought with a $1,200 oven and carpet already in it. The claim for them is $0. The owner then buys a new $900 dishwasher for the rental, and its decline in value is worked from that $900.

The ATO's example is Tim, who buys a house the seller re-carpeted before listing it. He cannot claim the carpet because he did not own it when it was first installed.

Who can still claim?

Someone carrying on a business of letting rental properties, and a company, a super fund that is not self-managed, a public unit trust or a managed investment trust. Property not used as residential accommodation, such as a doctor's surgery, is also left out of the limit.

Is the building different?

Yes. The building's structure is claimed as capital works, which follows other rules and lowers the cost base. See does depreciation increase capital gains tax on a rental.

What should I keep?

The contract date, and the date the rental began.
A list of what was in the property at purchase.
The receipt for each asset bought new for the rental.

On PropRetire the rental property tax calculator works the tax a rental adds or saves from its rent and deductions.