2017 to today
Depreciation on a property built in 2019
A residential building whose construction began in 2019 is deducted at 2.5% of its construction cost a year, for construction begun after 15 September 1987. Counting from 30 June 2019, its 40 years run from the 2019–20 income year to 2058–59, and from 2026–27 it has 33 income years left. Our national series puts new houses at $1,398 per m² of floor area in the year to 30 June 2019, 0.7% up on 2018's $1,388.
- Rate
- 2.5%
- Years left
- 33
- Last year
- 2058–59
What a house built in 2019 cost, state by state
A standard 200 m² single-storey brick veneer house at 2019 rates, less the builder's plant (3.2% of its cost that year), listed separately; the deduction is 2.5% of it a year.
| State | Rate per m² in 2019 | Construction cost | Deduction a year | Left to claim |
|---|---|---|---|---|
| New South Wales | $1,635 | $296,857 | $7,421 | $244,893 |
| Victoria | $1,406 | $255,169 | $6,379 | $210,507 |
| Queensland | $1,306 | $237,067 | $5,927 | $195,591 |
| Western Australia | $986 | $178,964 | $4,474 | $147,642 |
| South Australia | $897 | $162,794 | $4,070 | $134,310 |
| Tasmania | $1,365 | $247,828 | $6,196 | $204,468 |
| Australian Capital Territory | $1,335 | $242,302 | $6,058 | $199,914 |
| Northern Territory | $2,009 | $364,647 | $9,116 | $300,828 |
Indicative. "Left to claim" is the deduction a year times the 33 income years left; the first and last are usually part years.
The cost per m² around 2019
From 2018 to 2019 the standard house's rate per m² held level, from $1,336 to $1,336: the 38th steepest of the 40 year-on-year changes since 1985. In 2020 it rose 0.6%, to $1,344. At 2025's rates it costs $347,938 to build, 1.4 times its 2019 cost of $242,467, and the deduction is worked from the 2019 figure.
Building in 2019, 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 2019 is the year to 30 June 2019.
The rate per m²
Our national series puts new houses in the year to 30 June 2019 at $1,398 per m² of floor area, 0.7% up on 2018's $1,388 and 33% up over the ten years from 2009's $1,048.
The average new house
We put the average new house of 2019 at about 234 m² of floor area, read between the ABS figures for 2018 (231.9 m²) and 2020 (235.8 m²): at 2019's $1,398 per m², it cost about $327,000 to build.
How the figure was reached
How 2019's figure was arrived at: a published figure of medium or low confidence, blended with the interpolation. It rests on 1 source and is graded B, from A (a published figure) to D (an assumed rate of growth).
2019 in Division 43's history
- Counting the calendar year each began in as its first, 2019 is the 35th year of capital works for homes (from 18 July 1985), the 33rd year of the rate of 2.5% over 40 years (from 16 September 1987), the 28th year of structural improvements' claims (from 27 February 1992) and the 3rd year of 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 8th of its 40 income years at 2.5%. 33 income years, this one counted, carry 82.5% of its construction cost; the 17.5% of the 7 years before is spent, whoever owned it then. The first half of its years ends with 2038–39.
A kitchen replaced ten years on, in 2029, is new capital works with 40 years of its own, claimed until 2069: 10 years past 2019's own last income year, 2058–59. Every renovation since 2019 is the same, whatever the house's own date; its invoices and photos date it.
Renovating a rental built in 2019: 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 2019
In 2019 the builder's plant was about 3.2% 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 99% of its June quarter 2020 level in the June quarter 2019. Fitted in 2019, with each life counted from 30 June 2019 as the building's years are, none below has passed its effective life, the first ending in 2026–27; a replacement bought new for a let property starts its own.
| Item | Installed new, 2019 prices | Effective life | Life ends, income year |
|---|---|---|---|
| Oven | $1,572 | 12 years | 2030–31 |
| Cooktop | $619 | 12 years | 2030–31 |
| Dishwasher | $1,049 | 8 years | 2026–27 |
| Electric hot water system | $1,425 | 12 years | 2030–31 |
| Carpet | $3,734 | 8 years | 2026–27 |
| Blinds | $1,425 | 10 years | 2028–29 |
Common questions
How much depreciation can I claim on a house built in 2019?
On a 2019 building, 2.5% of what it cost to construct, each year until 2058–59. For a standard 200 m² brick veneer house that is about $7,421 a year in New South Wales, $6,379 in Victoria and $5,927 in Queensland, with 33 income years left. Plant new to you adds to that, as does any renovation since 2019.
I bought a 2019 property second-hand. Does the deduction start again?
No: a 2019 building's 40 years run from its completion, not from your purchase, so a buyer claims the 33 income years left, 2026–27 to 2058–59, on the original construction cost rather than the price paid. Fitted new in 2019, 56 of the 181 kinds of plant our catalogue prices have passed their effective lives, and the other 125 end from 2026–27 to 2048–49. A 2019 house has only ever been under section 40-27, from 7.30 pm on 9 May 2017: bought from an earlier owner, the plant that came with a 2019 house is generally not deductible (the 2017 rules set out who it reaches and the exceptions). Bought new, nobody having lived in it, 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 2019?
2.5% a year over 40 years, for construction begun after 15 September 1987: counting from 30 June 2019, the 2019–20 to 2058–59 income years. Construction begun on any day of 2019 qualifies, the window having opened on 16 September 1987, and 7 of its 40 income years have passed.
What did it cost to build a house in 2019?
In the year to 30 June 2019, our national series puts new houses at $1,398 per m² of floor area, 33% up over the ten years from 2009's $1,048, and the average new house, about 234 m², cost about $327,000 to build. At 2019's rates, our standard 200 m² single-storey brick veneer house, less the plant listed separately, cost about $242,467 at the national rate, against $242,467 in 2018 and $244,243 in 2020. In 2019 it was cheapest in South Australia, at $162,794, and dearest in the Northern Territory, at $364,647. Where the 2019 build's own cost is not documented, a schedule estimates it at 2019's rates, about $242,467 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.