Income tax, CGT and entities

Capital works deductions

Capital works deductions, sometimes called the building write-off, are deductions for the cost of construction of a building or structure, or of structural improvements, used to produce income. They are spread over a number of years at a rate set by law, which depends on when construction started and the kind of building. They are separate from depreciation of plant and equipment inside the building. The owner at the end of the income year claims the deduction for the period of ownership, and a later buyer can continue to claim if the cost records are passed on. A quantity surveyor's report is often used to establish the construction cost where it is not otherwise known.

General information, not tax advice. The rules change, so check the source page above for the current position. Fedix is developed by Tax7 R&D Pty Ltd.