Lessee of a building

Warning:

This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

End of attention

A lessee can claim a deduction in respect of an area leased or held under a quasi-ownership right.

To claim a deduction, the lessee must have:

• incurred the construction expenditure or been an assignee of the lessee who incurred the expenditure
• continuously leased or held the building itself, or the building must have been held in that way by previous lessees, holders or assignees since completion of construction, and
• used the building to produce assessable income.

If there is a lapse in the lease the entitlement to the deduction reverts to the building owner.