2010 to 2016
Depreciation on a property built in 2015
A residential building whose construction began in 2015 is deducted at 2.5% of its construction cost a year, for construction begun after 15 September 1987. Counting from 30 June 2015, its 40 years run from the 2015–16 income year to 2054–55, and from 2026–27 it has 29 income years left. Our national series puts new houses at $1,282 per m² of floor area in the year to 30 June 2015, 5% up on 2014's $1,225.
- Rate
- 2.5%
- Years left
- 29
- Last year
- 2054–55
What a house built in 2015 cost, state by state
A standard 200 m² single-storey brick veneer house at 2015 rates, less the builder's plant (3.3% of its cost that year), listed separately; the deduction is 2.5% of it a year.
| State | Rate per m² in 2015 | Construction cost | Deduction a year | Left to claim |
|---|---|---|---|---|
| New South Wales | $1,422 | $257,847 | $6,446 | $186,934 |
| Victoria | $1,253 | $227,284 | $5,682 | $164,778 |
| Queensland | $1,198 | $217,272 | $5,432 | $157,528 |
| Western Australia | $1,038 | $188,312 | $4,708 | $136,532 |
| South Australia | $856 | $155,237 | $3,881 | $112,549 |
| Tasmania | $1,196 | $216,843 | $5,421 | $157,209 |
| Australian Capital Territory | $1,222 | $221,610 | $5,540 | $160,660 |
| Northern Territory | $1,993 | $361,391 | $9,035 | $262,015 |
Indicative. "Left to claim" is the deduction a year times the 29 income years left; the first and last are usually part years.
The cost per m² around 2015
From 2014 to 2015 the standard house's rate per m² rose 5%, from $1,176 to $1,232: the 13th steepest of the 40 year-on-year changes since 1985. In 2016 it rose 2% again, to $1,255. At 2025's rates it costs $347,938 to build, 1.6 times its 2015 cost of $223,322, and the deduction is worked from the 2015 figure.
Building in 2015, nationally
The ABS measure: the value of new houses built (land excluded) over their floor area, so it follows the kind of house as well as prices, and its 2015 is the year to 30 June 2015.
The rate per m²
Our national series puts new houses in the year to 30 June 2015 at $1,282 per m² of floor area, 5% up on 2014's $1,225 and 54% up over the ten years from 2005's $832.
The average new house
We put the average new house of 2015 at about 237 m² of floor area, read between the ABS figures for 2013 (241.1 m²) and 2018 (231.9 m²): at 2015's $1,282 per m², it cost about $304,000 to build.
How the figure was reached
How 2015's figure was arrived at: between the 2013 and 2018 figures, following the ABS house construction output index. It rests on 1 source and is graded B, from A (a published figure) to D (an assumed rate of growth).
2015 in Division 43's history
- Counting the calendar year each began in as its first, 2015 is the 31st year of capital works for homes (from 18 July 1985), the 29th year of the rate of 2.5% over 40 years (from 16 September 1987) and the 24th year of structural improvements' claims (from 27 February 1992).
- 2015 came 2 years before section 40-27 on second-hand plant (from 7.30 pm on 9 May 2017).
Where it stands in 2026–27
2026–27 is the 12th of its 40 income years at 2.5%. 29 income years, this one counted, carry 72.5% of its construction cost; the 27.5% of the 11 years before is spent, whoever owned it then. The first half of its years ends with 2034–35.
A kitchen replaced ten years on, in 2025, is new capital works with 40 years of its own, claimed until 2065: 10 years past 2015's own last income year, 2054–55. Every renovation since 2015 is the same, whatever the house's own date; its invoices and photos date it.
Renovating a rental built in 2015: the old plant and works Houses of 2010 to 2016 beside the other years Using a previous owner's scheduleA standard house's plant, fitted new in 2015
In 2015 the builder's plant was about 3.3% of a standard house's cost, listed apart from the building; plant prices stood at 95% of 2020's by our plant index, and the ABS house construction price index for Australia stood at 92% of its June quarter 2020 level in the June quarter 2015. Fitted in 2015, with each life counted from 30 June 2015 as the building's years are, 3 of the 6 below have passed their effective lives, and the next ends in 2026–27; a replacement bought new for a let property starts its own.
| Item | Installed new, 2015 prices | Effective life | Life ends, income year |
|---|---|---|---|
| Oven | $1,512 | 12 years | 2026–27 |
| Cooktop | $595 | 12 years | 2026–27 |
| Dishwasher | $1,008 | 8 years | 2022–23 |
| Electric hot water system | $1,370 | 12 years | 2026–27 |
| Carpet | $3,591 | 8 years | 2022–23 |
| Blinds | $1,370 | 10 years | 2024–25 |
Common questions
How much depreciation can I claim on a house built in 2015?
On a 2015 building, 2.5% of what it cost to construct, each year until 2054–55. For a standard 200 m² brick veneer house that is about $6,446 a year in New South Wales, $5,682 in Victoria and $5,432 in Queensland, with 29 income years left. Plant new to you adds to that, as does any renovation since 2015.
I bought a 2015 property second-hand. Does the deduction start again?
No: a 2015 building's 40 years run from its completion, not from your purchase, so a buyer claims the 29 income years left, 2026–27 to 2054–55, on the original construction cost rather than the price paid. Fitted new in 2015, 113 of the 181 kinds of plant our catalogue prices have passed their effective lives, and the other 68 end from 2026–27 to 2044–45. Section 40-27 reaches plant acquired from 7.30 pm on 9 May 2017, when a 2015 house was 2 years old or so: bought from an earlier owner since then, the plant that came with a 2015 house is generally not deductible (the 2017 rules set out who it reaches and the exceptions). A 2015 house first sold new at or after then, nobody having lived in it, is under the same rule as a newer one: its plant is generally deductible as well, provided no earlier owner could deduct for it, unless you live in it before renting it out.
What was the rate for 2015?
2.5% a year over 40 years, for construction begun after 15 September 1987: counting from 30 June 2015, the 2015–16 to 2054–55 income years. Construction begun on any day of 2015 qualifies, the window having opened on 16 September 1987, and 11 of its 40 income years have passed.
What did it cost to build a house in 2015?
In the year to 30 June 2015, our national series puts new houses at $1,282 per m² of floor area, 54% up over the ten years from 2005's $832, and the average new house, about 237 m², cost about $304,000 to build. At 2015's rates, our standard 200 m² single-storey brick veneer house, less the plant listed separately, cost about $223,322 at the national rate, against $212,968 in 2014 and $227,413 in 2016. In 2015 it was cheapest in South Australia, at $155,237, and dearest in the Northern Territory, at $361,391. Where the 2015 build's own cost is not documented, a schedule estimates it at 2015's rates, about $223,322 for that house nationally, by an appropriately qualified person, as Taxation Ruling TR 97/25 accepts.
General information only, not advice about your circumstances. Speak to a registered tax agent before relying on it.