Rental Carpet Depreciation Calculator (Victoria)

By Tony Chalhoub, founder of CarpetAce and a carpet installer for more than 20 years. Free for renters, rental providers and property managers to use and share.

Quick answer: In Victoria, VCAT must consider the ATO’s depreciation scale when it decides what a renter pays for damaged carpet. On that scale, carpet bought from 1 July 2019 has an 8-year life (10 years if it was bought earlier), so compensation is based on the value left in the old carpet, not the price of new carpet. Normal wear and tear isn’t damage at all. Use the calculator below to work out the depreciated value.

From a written quote for the damaged room or area.

Enter the install date and the replacement cost to see the depreciated value.

How the calculator works

Victoria’s Residential Tenancies Regulations 2021 (regulation 90) make the ATO’s Rental Properties 2020 guide the depreciation scale for rented homes. Consumer Affairs Victoria’s guideline on damage and fair wear and tear says VCAT must consider that scale when it works out what a renter pays for damage, and gives this example: a renter who has lived in a property for 8 years can’t be expected to pay for new carpet when they leave, because carpet is considered to have an 8-year life.

The effective lives in the guide are:

Floor covering (removable without damage) Bought 1 July 2004 to 30 June 2019 Bought from 1 July 2019
Carpet 10 years 8 years
Floating timber 15 years 15 years
Vinyl 10 years 10 years
Linoleum 10 years 10 years

Carpet bought before July 2004 is also 10 years. The guide sets no life for floating timber bought before July 2004, so the calculator uses 15 years.

The calculator spreads the value evenly over that life (the straight-line method). Example: carpet installed in October 2023 is ruined in one bedroom in October 2026. It’s 3 years into an 8-year life, so 5/8 (62.5%) of its value is left. If replacing that room costs $2,000, the depreciated value is $1,250.

Damage, or fair wear and tear?

A renter pays only for damage, not for wear from normal living. These are among Consumer Affairs Victoria’s examples:

Fair wear and tear Damage
Traffic marks on carpet Carpet stains from burns, over-watered indoor plants or pets
Worn or faded carpet from a pet’s traffic Carpet stains from pet urine
Scuff marks on a wooden floor Badly scratched or gouged wooden floors

Compensation is for the damaged part of the property. If one bedroom’s carpet is ruined, the cost to look at is replacing that room.

Getting the replacement cost right

Use a written quote for the damaged area that includes the carpet, underlay, installation and taking up the old carpet. A single room usually costs more per m² than a whole house, for two reasons:

  • Roll width: carpet comes on 3.66 m wide rolls, so a room wider than that needs a join and an extra fill piece. A 4 × 4 m room carpeted on its own needs about 30 m² of carpet to cover 16 m² of floor.
  • Small jobs: at CarpetAce, jobs under 20 m² carry a $450 small-job charge.

For a rough figure first, try our online price guide or see our carpet prices in Melbourne. For a figure you can rely on, book a free measure: the written quote is emailed within 24 hours of the measure.

Tips for renters, rental providers and property managers

  • Find the install date. The carpet’s age decides most of the answer. Rental providers usually have the invoice; the ingoing condition report and photos also help.
  • Compare the condition reports. The ingoing and outgoing reports and photos show whether the carpet was already worn or stained.
  • Show the working. Use the “Copy this working” button to paste the calculation into an email or a bond claim.
  • Replacing carpet between tenants? See carpet for rentals and property sales.

Where to get help

This page is general information, not legal advice. For your own situation, see Consumer Affairs Victoria and Tenants Victoria. Bond disputes are decided by VCAT.

Frequently asked questions

How long does carpet last in a rental, according to the ATO?

The ATO’s Rental Properties 2020 guide gives carpet an effective life of 8 years if it was bought from 1 July 2019, and 10 years if it was bought between 1 July 2004 and 30 June 2019. Victoria uses this guide as the depreciation scale for rented homes.

Can a rental provider charge a renter for brand-new carpet?

Not just because the carpet has worn out: normal wear and tear isn’t damage. Where a renter did damage carpet, VCAT must consider depreciation, so compensation is based on the value left in the old carpet rather than the full cost of new carpet.

The carpet is more than 8 years old. Does the renter have to pay anything?

For carpet bought from 1 July 2019, the depreciation scale gives it no value left after 8 years. Consumer Affairs Victoria’s guideline uses this as an example of when a renter can’t be expected to pay for new carpet. VCAT still decides each case on its facts.

What should go into a carpet claim?

The install date (ideally the invoice), the ingoing and outgoing condition reports and photos, a written quote for replacing the damaged area, and the depreciation working.

Can I link to or share this calculator?

Yes. Renters’ groups, property managers and agents are welcome to link to this page or share it with renters and rental providers.

Sources

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