We just received two extremely thorough depreciation reports (thanks @Depreciator - highly recommended!) Normally we are all for delayed gratification and would chose the Prime Cost Method (PCM). Given that we are at our serviceability limit, moving forward will be relying more on savings and won't be moving up tax brackets in the forseeable future we are thinking a better option would be to receive the higher depreciation benefit sooner under the Diminishing Value Method (DVM). The DVM method will provide an approximate additional depreciation benefit (not tax refund) of: 1st year - $700 (partial financial year) 2nd year - $1,900 3rd year - $1,500 4th year - $800 Around the 7th year the PCM benefit becomes greater than the DVM What are your thoughts on Prime Cost vs. Diminishing Value?