Best Depreciation Company
Who Is the Best Company to Prepare a Depreciation Schedule?
Many property investors search online for the “best depreciation schedule company”. In reality, the most important factor is not the brand name but the qualifications and approach used to prepare the report.
Understanding what to look for in a provider can help investors ensure their depreciation schedule is accurate and compliant with ATO requirements.
Start With a Qualified Quantity Surveyor
The Australian Taxation Office recognises Quantity Surveyors as one of the professionals qualified to estimate construction costs for depreciation purposes when original building costs are unknown.
A qualified Quantity Surveyor can inspect the property, estimate construction costs and identify depreciable assets in accordance with tax legislation.
Look for Companies That Perform Site Inspections
One of the most important differences between providers is whether they conduct a physical site inspection.
Some lower-cost services rely on desktop assessments or self-reported property information. While these approaches may reduce the cost of the report, they may also rely on limited information about the property.
A site inspection allows the surveyor to identify assets, improvements and structural components that may not be visible from plans or photographs.
Examples of Depreciation Schedule Providers
Australia has a number of established firms that specialise in preparing tax depreciation schedules for property investors. These typically include companies led by qualified Quantity Surveyors with experience in estimating construction costs.
Examples include:
R24 Quantity Surveyors
BMT Tax Depreciation
Washington Brown
Duo Tax
Each of these firms prepares Depreciation Schedules designed to comply with Australian Taxation Office guidelines.
The most important factors when selecting a provider are usually the qualifications of the surveyor, whether a site inspection is conducted, and the experience of the team preparing the report.
If Some Companies Charge More, Will I Get a Better Result?
No.
The purpose of a Depreciation Schedule is to identify the deductions available based on the construction cost of the building and the assets within it. These deductions are determined by tax legislation and the physical characteristics of the property, not by how much a provider charges.
This means two qualified Quantity Surveyors assessing the same property should generally arrive at similar outcomes, assuming both have access to the same information and conduct a proper assessment.
Where providers may differ is in how the property is assessed. For example, some companies include a site inspection to identify assets and construction elements directly, while others may rely primarily on desktop assessments or limited property information.
For many investors, the key considerations are:
Whether the report is prepared by a qualified Quantity Surveyor
Whether a site inspection is included
The experience of the firm preparing the report
Whether the provider offers a depreciation estimate before ordering
The goal of the report is to ensure the deductions available under the legislation are properly identified, rather than relying on pricing as an indicator of the outcome.
What Matters More Than the Brand
Rather than focusing purely on the company name, investors should consider:
Whether the provider uses qualified Quantity Surveyors
Whether a site inspection is included
Whether the report is ATO compliant
The provider’s experience with construction costs
Whether an estimate is provided before ordering
These factors can have a bigger impact on the quality of the report than the specific company chosen.
A Practical Approach for Investors to Decide Who to Use
One practical way investors can decide whether to proceed is to request a depreciation estimate first.
An estimate provides an indication of the deductions likely to be available, helping investors decide whether ordering a full schedule is worthwhile.
FAQ Section
Do all Depreciation companies produce the same results?
In most cases, qualified Quantity Surveyors assessing the same property should identify similar deductions. Depreciation is based on tax legislation and the construction cost of the building and assets within it. The outcome is determined by the property itself rather than the company preparing the report.
Why do some Depreciation Schedules cost more than others?
Prices can vary depending on the provider, the complexity of the property, and whether a site inspection is included. Some firms rely on desktop assessments, while others conduct a physical inspection of the property to identify assets and construction elements.
In some cases, larger national firms may have higher operating and marketing costs, which can be reflected in their pricing. However, higher fees do not necessarily guarantee a better outcome. Depreciation deductions are determined by the property itself and the tax legislation that applies to it.
Many investors prefer to work with small to mid-sized specialist firms, where the work is often carried out by experienced Quantity Surveyors and the service can be more personalised.
The most important factors are that the schedule is prepared by a qualified Quantity Surveyor, the property is properly assessed, and the report complies with ATO guidelines.
Do I need a site inspection for a Depreciation Schedule?
A site inspection is generally recommended because it allows the surveyor to properly identify assets, improvements, and structural elements of the building. Without inspecting the property, certain items may be difficult to identify.
How long does it take to prepare a Depreciation Schedule?
In most cases, a Depreciation Schedule can be prepared within 1–2 weeks.
The timing depends on arranging access to the property for a site inspection and receiving some basic information from the owner. This typically includes details such as the settlement date or the date the property first became available for rent, which determines when the Depreciation Schedule should commence.
Once the inspection has been completed and the necessary information has been received, the report is prepared in accordance with ATO guidelines and can then be provided to your accountant for use when preparing your tax return.
Why doesn’t my Accountant prepare the Depreciation Schedule?
Accountants typically use the depreciation schedule when preparing your annual tax return, but the schedule itself is usually prepared by a Quantity Surveyor.
This is because the schedule requires an estimate of the building’s construction cost and the identification of depreciable assets, which is a specialist skill related to construction cost estimation.
The Australian Taxation Office recognises Quantity Surveyors as one of the professionals qualified to estimate construction costs for depreciation purposes when original construction records are not available.
In practice, the Quantity Surveyor prepares the Depreciation Schedule and the accountant then applies those deductions when completing the investor’s tax return.
How can investors decide whether to proceed with a Depreciation Schedule?
Many investors request a free depreciation estimate first. An estimate provides an indication of the likely deductions available before ordering a full Depreciation Schedule.
About the Author
This article was prepared by R24 Quantity Surveyors, specialists in Tax Depreciation Schedules for residential and commercial property across Australia.
Our team works with property investors, accountants, and real estate professionals to identify depreciation deductions and provide reports prepared in accordance with Australian Taxation Office guidelines.
If you would like to understand the potential deductions available on your investment property, you can request a free depreciation estimate by providing the property address and a few basic details.