Depreciation - Useful Life of Rental Property Assets

Here’s a summary table of common residential rental property assets and their ATO effective lives (based on Taxation Ruling TR 2022/1 and ATO guidelines):

ATO Effective Life Table – Common Rental Property Assets

Asset
Effective Life (Years)
Air Conditioner – Room Unit
10
Air Conditioner – Split System
10
Air Conditioner – Packaged Unit
15
Ceiling Fan
5
Carpet (removable)
8
Floating Timber Flooring
15
Curtains / Blinds
6
Dishwasher
8
Oven / Stove
12
Rangehood
12
Refrigerator
14
Washing Machine
6
Dryer
6
Microwave Oven
6
Hot Water System – Electric
12
Hot Water System – Gas
12
Smoke Detector
10
Light Fittings (removable)
10
Furniture (general)
10

Important Notes:

  • These apply to plant and equipment assets under Division 40.
  • Capital works (building structure) are claimed separately at 2.5% per year over 40 years under Division 43.
  • Post-2017 rules: You can only claim depreciation on new assets in residential rental properties (not second-hand items) unless the property is owned by a company or is commercial.