Lessee of a building



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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.

Last modified: 25 Nov 2009QC 21714