Calculation and rate of deduction

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A fund's entitlement to a deduction begins on the date the building is first used to produce assessable income. The first and last years of use may be apportioned. The entitlement to a deduction runs for either 25 or 40 years (the limitation period) depending on the rate of deduction applicable.

The legislation contains two calculation provisions:

• section 43-215 of the ITAA 1997, deduction for capital works which began before 27 February 1992
• section 43-210 of the ITAA 1997, deduction for capital works which began after 26 February 1992.