From the 9th of May 2017 the government limited the depreciation deductions for plant and equipment for residential investment properties. The changes removed an owner’s ability to claim a depreciation deduction for previously used plant and equipment (items that are 'easily' removed from a property, such as ceiling fans, dishwashers, mechanical fixtures and fittings) in properties which exchanged contracts after the 9th of May 2017. This means that any investor who signed contracts prior to 9th of May 2017 can continue to claim depreciation deductions as per usual.
These changes apply only to second-hand residential properties. Investors who purchase a brand new property can continue to claim depreciation for plant and equipment as usual.
Claiming the capital works component won’t be affected (deductions available in the event of wear and tear of building structures and also fixed items).