2017 to today
Depreciation on a property built in 2017
A residential building whose construction began in 2017 is deducted at 2.5% of its construction cost a year, for construction begun after 15 September 1987. Counting from 30 June 2017, its 40 years run from the 2017–18 income year to 2056–57, and from 2026–27 it has 31 income years left. Our national series puts new houses at $1,343 per m² of floor area in the year to 30 June 2017, 3% up on 2016's $1,303.
- Rate
- 2.5%
- Years left
- 31
- Last year
- 2056–57
What a house built in 2017 cost, state by state
A standard 200 m² single-storey brick veneer house at 2017 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 2017 | Construction cost | Deduction a year | Left to claim |
|---|---|---|---|---|
| New South Wales | $1,531 | $277,673 | $6,942 | $215,202 |
| Victoria | $1,352 | $245,158 | $6,129 | $189,999 |
| Queensland | $1,277 | $231,513 | $5,788 | $179,428 |
| Western Australia | $1,008 | $182,786 | $4,570 | $141,670 |
| South Australia | $869 | $157,571 | $3,939 | $122,109 |
| Tasmania | $1,283 | $232,638 | $5,816 | $180,296 |
| Australian Capital Territory | $1,258 | $228,089 | $5,702 | $176,762 |
| Northern Territory | $2,006 | $363,742 | $9,094 | $281,914 |
Indicative. "Left to claim" is the deduction a year times the 31 income years left; the first and last are usually part years.
The cost per m² around 2017
From 2016 to 2017 the standard house's rate per m² rose 3%, from $1,255 to $1,294: the 22nd steepest of the 40 year-on-year changes since 1985. In 2018 it rose 3% again, to $1,336. At 2025's rates it costs $347,938 to build, 1.5 times its 2017 cost of $234,568, and the deduction is worked from the 2017 figure.
Building in 2017, 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 2017 is the year to 30 June 2017.
The rate per m²
Our national series puts new houses in the year to 30 June 2017 at $1,343 per m² of floor area, 3% up on 2016's $1,303 and 44% up over the ten years from 2007's $930.
The average new house
We put the average new house of 2017 at about 234 m² of floor area, read between the ABS figures for 2013 (241.1 m²) and 2018 (231.9 m²): at 2017's $1,343 per m², it cost about $314,000 to build.
How the figure was reached
How 2017'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).
2017 in Division 43's history
- 9 May was the year's 129th day: plant in a property contracted for from an earlier owner in its first 128 days, or that day before 7.30 pm, is generally under the earlier rule only if the property was let, or available for rent, at some time in the year to 30 June 2017 (otherwise section 40-27 reaches it too), and plant in one contracted for from that evening to the year's end, 237 days counting that day, is under section 40-27.
- Counting the calendar year each began in as its first, 2017 is the 33rd year of capital works for homes (from 18 July 1985), the 31st year of the rate of 2.5% over 40 years (from 16 September 1987) and the 26th year of structural improvements' claims (from 27 February 1992).
Section 40-27 reaches plant acquired from 7.30 pm on 9 May 2017 in a second way too: where it is used for a private purpose in a way that is not occasional, as it can be in a holiday rental its owner also stays in, even plant bought new is generally not deductible for the letting either, for the income year that use begins and every later one.
Where it stands in 2026–27
2026–27 is the 10th of its 40 income years at 2.5%. 31 income years, this one counted, carry 77.5% of its construction cost; the 22.5% of the 9 years before is spent, whoever owned it then. The first half of its years ends with 2036–37.
A kitchen replaced ten years on, in 2027, is new capital works with 40 years of its own, claimed until 2067: 10 years past 2017's own last income year, 2056–57. Every renovation since 2017 is the same, whatever the house's own date; its invoices and photos date it.
Renovating a rental built in 2017: the old plant and works Houses of 2017 to today beside the other years Using a previous owner's scheduleA standard house's plant, fitted new in 2017
In 2017 the builder's plant was about 3.3% of a standard house's cost, listed apart from the building; plant prices stood at 97% of 2020's by our plant index, and the ABS house construction price index for Australia stood at 97% of its June quarter 2020 level in the June quarter 2017. Fitted in 2017, with each life counted from 30 June 2017 as the building's years are, 2 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, 2017 prices | Effective life | Life ends, income year |
|---|---|---|---|
| Oven | $1,533 | 12 years | 2028–29 |
| Cooktop | $604 | 12 years | 2028–29 |
| Dishwasher | $1,023 | 8 years | 2024–25 |
| Electric hot water system | $1,389 | 12 years | 2028–29 |
| Carpet | $3,642 | 8 years | 2024–25 |
| Blinds | $1,389 | 10 years | 2026–27 |
Common questions
How much depreciation can I claim on a house built in 2017?
On a 2017 building, 2.5% of what it cost to construct, each year until 2056–57. For a standard 200 m² brick veneer house that is about $6,942 a year in New South Wales, $6,129 in Victoria and $5,788 in Queensland, with 31 income years left. Plant new to you adds to that, as does any renovation since 2017.
I bought a 2017 property second-hand. Does the deduction start again?
No: a 2017 building's 40 years run from its completion, not from your purchase, so a buyer claims the 31 income years left, 2026–27 to 2056–57, on the original construction cost rather than the price paid. Fitted new in 2017, 65 of the 181 kinds of plant our catalogue prices have passed their effective lives, and the other 116 end from 2026–27 to 2046–47. The rule on plant changed in 2017: bought from an earlier owner from 7.30 pm on 9 May 2017, the plant that came with an established home is generally not deductible (section 40-27; the 2017 rules set out who it reaches and the exceptions). Bought new, nobody having lived in it, a 2017 house's 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 2017?
2.5% a year over 40 years, for construction begun after 15 September 1987: counting from 30 June 2017, the 2017–18 to 2056–57 income years. Construction begun on any day of 2017 qualifies, the window having opened on 16 September 1987, and 9 of its 40 income years have passed.
What did it cost to build a house in 2017?
In the year to 30 June 2017, our national series puts new houses at $1,343 per m² of floor area, 44% up over the ten years from 2007's $930, and the average new house, about 234 m², cost about $314,000 to build. At 2017's rates, our standard 200 m² single-storey brick veneer house, less the plant listed separately, cost about $234,568 at the national rate, against $227,413 in 2016 and $242,467 in 2018. In 2017 it was cheapest in South Australia, at $157,571, and dearest in the Northern Territory, at $363,742. Where the 2017 build's own cost is not documented, a schedule estimates it at 2017's rates, about $234,568 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.