Capital works



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You can deduct construction costs in respect of the following capital works:

  • buildings or extensions, alterations or improvements to a building
  • structural improvements or extensions, alterations or improvements to structural improvements
  • environmental protection earthworks.

Deductions for construction costs and structural improvements must be based on actual costs incurred. If it is not possible to genuinely determine the actual costs, obtain an estimate by a quantity surveyor or other independent qualified person. The costs incurred by the fund to obtain this estimate are deductible as a tax-related expense, not as an expense in gaining or producing assessable income.

Different deduction rates apply (2.5% or 4%) depending on the date on which construction began, the type of capital works, and the manner of use.

Last modified: 05 Nov 2014QC 40267