Are you saying that the cost of the repair charged by a kitchen firm to insert a panel to re-place the damaged area would be discounted by an amount (proportionally) equivalent to the depreciation of the cabinets? Can you give an example where VCAT has arrived at that decision?
It is a repair.
Do the repair of inserting a 'surface saver' panel of quality heavy plywood where the damage has occurred.
Charge the tenant for the repair.
It is nonsense that the owner should be 'sucking it up' and walking away from demanding payment for the repair.
What evidence...