A quantity surveyor (QS) is a construction cost professional who specialises in estimating and measuring the value of building materials, labour, and construction works. For investment property owners in Australia, their most relevant service is preparing a Tax Depreciation Schedule.
What a Tax Depreciation Schedule contains. A QS physically inspects the property and documents every depreciable item — from the building structure itself to carpets, appliances, light fittings, and hot water systems. They calculate the depreciation deductions available to the owner under Division 43 (capital works) and Division 40 (plant and equipment) of the Income Tax Assessment Act.
Why it’s essential. The ATO requires that depreciation claims be supported by a qualified estimate — investors cannot self-estimate depreciation on investment properties. A QS report provides the documentation needed for the tax return and withstands ATO audit scrutiny.
When to commission a report. As soon as practical after settlement on a new investment property. Depreciation can be backdated to the settlement date, so even investors who did not get a report at the time of purchase can recover missed deductions (subject to ATO guidelines).
Cost and return. QS fees typically range from $400–$800. For a new property, annual depreciation deductions of $10,000–$20,000+ are common, generating thousands in tax savings in year one — a significant multiple on the QS fee.
Who benefits most. Investors in higher tax brackets and owners of newer properties (higher depreciation) benefit most from a professional depreciation schedule.
