What Is a Quantity Surveyor Report?

A quantity surveyor report, also known as a tax depreciation schedule, is a professional document that identifies and estimates the value of depreciation deductions available on an investment property. Licensed quantity surveyors inspect the property and prepare a detailed report that your accountant uses to claim depreciation on your annual tax return.

The report covers two main categories of depreciation. Capital works deductions (Division 43) cover the building structure itself — walls, roofs, floors, and permanent fixtures. Plant and equipment deductions (Division 40) cover removable assets like carpets, blinds, air conditioners, hot water systems, and kitchen appliances.

Quantity surveyors are recognised by the Australian Tax Office (ATO) as qualified professionals for estimating construction costs. Their reports must follow ATO guidelines and use accepted estimating methods. Using an unqualified person for your depreciation schedule can lead to ATO audit and penalties.

The value of a quantity surveyor report depends on your property's age, construction type, and the quality of fixtures. Newer properties and recently renovated properties generate the highest depreciation claims. Use our income tax calculator to see how additional deductions reduce your taxable income.

Capital Works Deductions (Division 43): 2.5% Per Year

Capital works deductions allow you to claim 2.5% of the original construction cost each year for 40 years. This applies to residential investment properties where construction commenced after 15 September 1987. The deduction covers the building structure and fixed permanent improvements.

For example, if your property was built in 2010 at a construction cost of $400,000, you can claim $10,000 per year ($400,000 × 2.5%) for 40 years. A quantity surveyor determines the eligible construction cost using building cost estimates or original building contracts.

The key point is that older properties (pre-1987) do not qualify for capital works deductions at all. However, if any structural renovations were done after 1987, those specific improvements may still qualify. A quantity surveyor can identify which parts of the property qualify. Check our superannuation guide to see how property investment fits into your overall retirement strategy.

Plant and Equipment Deductions (Division 40)

Plant and equipment assets are the removable items inside a rental property. These depreciate much faster than the building structure. The ATO publishes effective lives for each asset type, and you can choose between the prime cost (straight-line) method or the diminishing value method.

For properties purchased after 9 May 2017, there are important restrictions. If you buy an existing residential property (second-hand), you can only claim plant and equipment deductions on new assets you install yourself — not on existing assets that came with the property. This rule was introduced to stop investors from claiming existing carpets, blinds, and appliances that the previous owner had already claimed.

Newly constructed properties or properties where you are the first owner get full plant and equipment deductions. Investors who buy off-the-plan or build new benefit most from these deductions. Use our Medicare levy calculator to see how property deductions affect all aspects of your tax bill.

How Much Does a Quantity Surveyor Report Cost?

A professional quantity surveyor report typically costs between $600 and $900 for a standard residential investment property. Prices vary depending on the property size, location, and complexity. Most quantity surveyors offer a guarantee that their report will generate more in deductions than the cost of the report itself.

The cost of the quantity surveyor report is itself tax deductible as a capital works expense. You claim the fee in the year you receive the report. If you own multiple properties, each property needs its own depreciation schedule.

Some quantity surveyors offer a desktop assessment for $200–$400 if the property has standard specifications and recent building plans available. However, a full on-site inspection produces more accurate results and is recommended for older or uniquely designed properties.

The typical rental property generates $5,000–$15,000 per year in depreciation deductions over the first 5–10 years. For an investor in the 37% tax bracket, this means $1,850–$5,550 in annual tax savings. Even in the 30% bracket, the savings are $1,500–$4,500 per year — far exceeding the one-time cost of the report. Our salary sacrifice guide explains other strategies to reduce your taxable income.

Do You Need a Quantity Surveyor Report?

The ATO requires that depreciation deductions be calculated correctly. While you could theoretically estimate construction costs yourself, the ATO accepts only quantity surveyor estimates as professional evidence. If you claim depreciation without a qualified report and are audited, the ATO may disallow your claims and impose penalties.

You definitely need a quantity surveyor report if your property was built after 1987, has had major renovations, or if you are the first owner. Properties built before 1987 typically do not qualify for capital works deductions, but a report can still identify any eligible renovations done later.

You do not need a separate report every year. The depreciation schedule lasts for the life of the assets — up to 40 years for capital works. However, you should update the schedule if you make significant renovations or replace major assets like the roof, kitchen, or bathroom.

Many investors delay getting a report by several years and then claim catch-up depreciation for previous years. This is allowed, but the claims must still follow the correct effective life calculations. Getting the report sooner maximises the tax benefit because you start claiming earlier.

Quantity Surveyor vs Accountant: Who Does What?

Quantity surveyors and accountants play different roles in property tax depreciation. The quantity surveyor prepares the depreciation schedule with the asset list and calculations. Your accountant then uses that schedule to enter the figures into your annual tax return.

Your accountant cannot prepare a quantity surveyor report unless they also hold quantity surveyor qualifications. Depreciation estimation requires specialised construction knowledge — knowing building materials, construction methods, cost per square metre, and asset categorisation that accountants typically do not have.

A good working relationship between your quantity surveyor and accountant ensures maximum deductions. Some quantity surveyors provide ongoing support if the ATO questions your claims. They also handle the complexities of the 2017 plant and equipment rules, ensuring you claim only what you're entitled to.

When choosing a quantity surveyor, look for membership in the Australian Institute of Quantity Surveyors (AIQS) or the Royal Institution of Chartered Surveyors (RICS). These professional bodies set standards and provide ATO-recognised qualifications. Use our HECS-HELP calculator to see how property deductions also affect your HELP repayment obligations.

Frequently Asked Questions

Can I prepare my own depreciation schedule?

Technically yes, but the ATO requires estimates to be prepared by a suitably qualified professional. If you prepare your own schedule and are audited, the ATO will likely disallow the claims unless you can demonstrate professional-level estimating skills. The small saving on report cost is not worth the audit risk.

How long does a quantity surveyor report take?

A full report typically takes 5–10 business days from the on-site inspection. Some firms offer express services within 2–3 days for an additional fee. Desktop assessments without an inspection can be ready in 1–2 days but may miss important details.

Can I get a quantity surveyor report for a property I already own?

Yes, you can get a report at any time for an existing property. You can claim catch-up depreciation for previous years, but the claims are limited to the effective life of each asset. The ATO generally allows amending the last two years of tax returns to include previously unclaimed depreciation.

Does a quantity surveyor report help with capital gains tax?

Depreciation deductions reduce your cost base for capital gains tax purposes. When you sell the property, the total depreciation claimed is deducted from the cost base, potentially increasing your capital gain. This is known as "Division 43 clawback" and mainly affects capital works deductions, not plant and equipment.

Can I claim the quantity surveyor report fee immediately?

Yes, the cost of the depreciation schedule is deductible as a capital works expense in the financial year you receive the report. Unlike the depreciation itself (which is spread over 40 years), the report cost is fully deductible in the year incurred.

How long do I keep a quantity surveyor report?

The ATO requires you to keep depreciation records for five years after the date you lodge the relevant tax return. However, since depreciation schedules span 40 years, it is wise to keep the report for the entire life of the property ownership plus five years after you sell.