PPOR that becomes an IP soon - when to start renovate?

Hi everyone!
We bought an old house and moved in a month ago.
It's a PPOR and we didn't have to pay stamp duty as we got an exemption due to being first homeowners.

We're planning to move back into the city in 5-6 months and renting it out.
I'd like to start with some cosmetic renovations, however heard that it's better to do that just before it's rented out, because I can then claim depreciation. Is that true and at what time before a tenant is in can we start with renovations that can be claimed?

So for example: If I would only be able to depreciate renovations done a week before a tenant is moving in I can only get so much done and might start with some things now. If I have a month to renovate I might start with everything just in the last month we live in it. Thanks for your help!

 

Renovating while living in a place is never fun......
But it also depends on what your idea of renovating is ?
Painting isn't exactly renovating !

Just organize for a depreciation schedule after you move out, it can be done soon after a tenant moves in but it is better prior.

@Depreciator

 

@Stoffo It's not too bad. I would count painting towards renovating. However, we would have to buy some more expensive things for example in the bathroom and kitchen though. I wonder on which things I can get depreciation after I move out, which things before I move out.
What does the depreciation schedule include?

 

any building works won't matter too much, but you want to make sure plant and equipment is new when you rent it out otherwise you won't be able to depreciate it. aircons, stoves, hotwater etc.

 

Seconded. Where possible, wait until after you moved out to install these items, otherwise you'll have no claim. That may or not be feasible if you're living there and don't want to rough it!

 

That makes sense, thank you for that!

When you say building works won't matter too much: What items would that include? Let's say kitchen cabinets? What about a bathroom vanity? Is there a list or some rules that you (or @BMT Tax Depreciation) know of that could help to know what I can buy now and what's best to do after we have moved out?

 

What's the event that makes the difference after I can claim?
Is the moment I move out, when I advertise or after the tenants moved in?

 

Here are a couple of resources for you.

See from page 41 onwards for a list:

https://www.ato.gov.au/uploadedFiles/Content/IND/Downloads/Rental-properties-2021.pdf

Or, if you're looking for something specific, tick the "search residential assets only" on our rate finder here:

Asset Depreciation Rates Finder Online & App | ATO Depreciation Rates

If nothing comes up, it's capital works.

You can't be living there. Once you move out, if you can demonstrate from that point that you are trying to tenant the property, it is "available for income" and you should be fine.