Depreciation on a property built in 2014

On a 2014 building, 2.5% of what it cost to construct, each year until 2053–54. For a standard 200 m² brick veneer house that is about $5,955 a year in New South Wales, $5,420 in Victoria and $5,220 in Queensland, with 28 income years left. Plant new to you adds to that, as does any renovation since 2014.

No: a 2014 building's 40 years run from its completion, not from your purchase, so a buyer claims the 28 income years left, 2026–27 to 2053–54, on the original construction cost rather than the price paid. Fitted new in 2014, 127 of the 181 kinds of plant our catalogue prices have passed their effective lives, and the other 54 end from 2027–28 to 2043–44. Section 40-27 reaches plant acquired from 7.30 pm on 9 May 2017, when a 2014 house was 3 years old or so: bought from an earlier owner since then, the plant that came with a 2014 house is generally not deductible (the 2017 rules set out who it reaches and the exceptions).

2.5% a year over 40 years, for construction begun after 15 September 1987: counting from 30 June 2014, the 2014–15 to 2053–54 income years. Construction begun on any day of 2014 qualifies, the window having opened on 16 September 1987, and 12 of its 40 income years have passed.

In the year to 30 June 2014, our national series puts new houses at $1,225 per m² of floor area, 61% up over the ten years from 2004's $761, and the average new house, about 239 m², cost about $293,000 to build. At 2014's rates, our standard 200 m² single-storey brick veneer house, less the plant listed separately, cost about $212,968 at the national rate, against $207,351 in 2013 and $223,322 in 2015. In 2014 it was cheapest in South Australia, at $151,623, and dearest in the Northern Territory, at $358,516. Where the 2014 build's own cost is not documented, a schedule estimates it at 2014's rates, about $212,968 for that house nationally, by an appropriately qualified person, as Taxation Ruling TR 97/25 accepts.