The median unit price in Ettalong Beach climbed around 191 per cent across five years, from roughly $304,000 to $887,500, a run that Domain called Australia’s best-performing unit market over that stretch. Much of that momentum comes from the new apartment buildings rising along The Esplanade and Ocean View Road.
For anyone holding one of those properties as an investment, depreciation adds a further benefit. Depreciation is a non-cash deduction. You claim the gradual decline in the value of the building and its fittings every year, even though no money leaves your bank account. A property that runs at cashflow neutral before tax can still generate a paper tax loss through depreciation, without any extra out-of-pocket cost each year.
What a Depreciation Schedule Actually Is
A depreciation schedule is a report a qualified quantity surveyor prepares, itemising every depreciable asset in your property and the amount you can claim in each financial year. NAB describes it as a detailed report that outlines the rate at which your assets will decline in value and the deductions you can claim over time.
It is a document that turns your whole property into a year-by-year number. The schedule splits into the building structure on one side and the removable fittings on the other, and it sets out exactly what belongs in each category. It is a tax document, not a valuation. The ATO confirms you can claim the cost of obtaining the schedule in the income year you pay it.
The Two Ways Property Depreciates
The ATO treats depreciation in two separate categories, each with its own rate. Capital works, known as Division 43, covers the structure of the building and the things permanently fixed to it. This is generally claimed at 2.5 per cent a year over 40 years from when construction finishes, on qualifying residential buildings constructed after 1987.
Plant and equipment, known as Division 40, covers the easily removable or mechanical assets: ovens, air conditioners, carpets, blinds and the like. These are written off over the ATO’s set effective life for each item. A dishwasher, for example, carries an eight-year effective life, claimable at 25 per cent diminishing value or 12 per cent prime cost each year. The ATO also allows an immediate full deduction for any asset costing $300 or less, unless it is part of a set that exceeds that figure.
New vs Established: What Changes What You Can Claim
Since 2017, buyers of secondhand residential properties have generally been able to claim the structural Division 43 write-off, but not the plant and equipment a previous owner installed. New or near-new properties keep the full range of both categories, according to Property Investment Professionals.
The numbers make the difference clear. In BMT’s figures for the 2021-22 financial year, a brand-new property averaged $15,363 in first full-year depreciation, compared with $8,032 for an established property. Properties affected by the 2017 changes still averaged $6,249, and properties built in 1987 or earlier averaged $5,403, so every age of property has something to claim.
Why Ettalong Beach Is a Depreciation Sweet Spot
The suburb’s building boom is relevant here: new developments qualify for the largest deductions, and Ettalong Beach has a growing number of them. The Jabiru building at 237-245 Ocean View Road is a five-storey project with 51 apartments over six retail tenancies, and the Atlantis building sits at 47-49 The Esplanade. An 83-room hotel has been approved on Memorial Avenue, with more shoptop apartments proposed along Ocean View Road, as The Urban Developer and AreaSearch document.
More projects are proposed. The Peninsula Chamber of Commerce has backed a fresh round of mixed-use projects as the town centre grows, including a five-level scheme of 24 apartments at 227-233 Ocean View Road and a five-storey redevelopment of the old Ettalong Beach Motel site with potential for 44 apartments, according to City Coast Business Review. That new stock is lifting the median unit price, as Domain reports. The median house price sits around the $1.3 million mark in recent figures from realestate.com.au and Your Investment Property.
The rental market here is active. House rents sit around $680 a week, up 7.9 per cent over the year, while units sit around $590 a week, up 8.3 per cent, according to OpenAgent. Those are suburb-wide medians; newer waterfront stock commands more, with agents quoted in Domain’s reporting putting unit rents closer to $750 to $800 a week. Depreciation applies to income-producing property, and Ettalong Beach has an established rental market.
How a Schedule Is Prepared (and What It Costs)
The process is straightforward. You engage a qualified quantity surveyor, they visit the property and identify every claimable asset, and they produce the schedule. A site visit helps capture items an owner might otherwise miss, which keeps your claims both higher and compliant with the ATO, as DPN notes.
The fee is a one-off cost. The ATO lets you claim the cost of obtaining the schedule in the income year you pay it, so the cost is deductible in that same year.
How to Get the Most From Your Schedule
Timing matters. NAB suggests ordering a schedule before you renovate, so you can track items being disposed of, and again after, so every new addition is captured as a claim.
Renovations are claimable even when a previous owner completed them, which means a fresh schedule can surface value you did not create yourself, according to DPN. For plant and equipment you also get to choose between the diminishing value and prime cost methods, and the ATO spells out how each works. A specialist quantity surveyor will typically calculate both methods so you and your accountant can choose which suits your position, as BMT explains. The two methods claim the same total over the life of the asset but differ in timing: diminishing value returns higher deductions in the earlier years, while prime cost spreads them evenly, and once a method is chosen it cannot be changed.
Conclusion: Turning a Deduction Into a Stronger Return
Depreciation is a straightforward way to improve the after-tax return on an Ettalong Beach investment. It is legitimate, it is claimable year after year, and the suburb’s growing stock of new apartments includes the properties that earn the largest deductions.
Whether you are buying off the plan or holding an established unit near the water, a schedule is a small, deductible step that improves the after-tax result. If you want local guidance on which properties make the most of it, the team at Stone Real Estate Ettalong Beach can help you choose the property and location that best suits that claim.
Frequently Asked Questions
What is a depreciation schedule for an Ettalong Beach investment property?
It is a report a qualified quantity surveyor prepares that itemises every depreciable asset in the property and the claimable amount per financial year. It covers the building structure and the fittings, and it is a tax document rather than a valuation.
Do I need a depreciation schedule for an Ettalong Beach rental property?
If the property is rented out and producing income, you can generally claim depreciation on it. The suburb’s established rental market and its growing stock of new apartments make a schedule relevant here.
What is the difference between capital works and plant and equipment depreciation in Ettalong Beach?
Capital works, or Division 43, covers the structure and permanently fixed items, claimed at 2.5 per cent a year over 40 years. Plant and equipment, or Division 40, covers removable and mechanical assets like ovens and air conditioners, written off over each item’s effective life.
Can I still claim depreciation on an older Ettalong Beach property?
Yes. You can claim the structural write-off on qualifying buildings and on renovations, and older properties still average meaningful deductions each year. Properties built in 1987 or earlier averaged $5,403 in first full-year depreciation in BMT’s 2021-22 figures.
How much depreciation can I expect to claim on an Ettalong Beach property?
It varies by property, but BMT’s 2021-22 averages give a useful guide. A brand-new property averaged $15,363 in its first full year, while an established property averaged $8,032. Treat these as indicative ranges rather than guarantees.
Who prepares a depreciation schedule in Ettalong Beach, and is the fee tax-deductible?
A qualified quantity surveyor prepares it, usually after a site visit. The cost of obtaining the schedule is claimable in the income year you pay it.
Does the 2017 rule change affect my Ettalong Beach investment?
It can. Buyers of secondhand residential properties generally cannot claim plant and equipment a previous owner installed, but the structural Division 43 write-off remains available. New or near-new properties keep the full range.
When should I get a depreciation schedule for my Ettalong Beach property?
Order one around settlement, and again before and after any renovation. A pre-renovation schedule tracks items being disposed of, and a post-renovation schedule captures every new addition.
Can I claim depreciation on renovations a previous owner did in Ettalong Beach?
Yes. Capital works on qualifying renovations are claimable even when a previous owner completed the work, so a fresh schedule can surface value you did not create yourself.
Is depreciation worth it for a brand-new off-the-plan apartment in Ettalong Beach?
It usually is. Brand-new builds attract the largest deductions, and projects like Jabiru on Ocean View Road and Atlantis on The Esplanade are the kind of new stock that qualifies for both categories.
How does depreciation help cash flow on an Ettalong Beach rental?
It is a non-cash deduction, so it can improve your after-tax position without any extra out-of-pocket spending. A property that is neutral or negatively geared before tax can show a stronger after-tax result through depreciation.
Can owner-occupiers in Ettalong Beach claim depreciation?
No. Depreciation applies to income-producing properties. But if you buy a home here and later rent it out, which is common in a holiday and second-home market, you should get a schedule so the deductions are ready when you do.