Establishing the deduction base



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

End of attention

You can deduct expenditure for the construction of capital works if there is a construction expenditure area for the capital works.

Whether there is such an area and how it is identified depends on:

  • the type of expenditure incurred
  • the time the capital works started
  • the area of the capital works to be owned, leased or held by the entity that incurred the expenditure
  • for capital works begun before 1 July 1997, the area of the capital works that was to be used in a particular manner - see section 43-90 of the ITAA 1997.
Last modified: 25 Nov 2009QC 21714