• Capital works begun after 26 February 1992

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    Calculate the deduction separately for each part of capital works that meets the description of your area.

    Multiply the construction expenditure by the applicable rate and by the number of days in the income year in which the fund owned, leased or held your area and used it in a relevant way. Divide that amount by the number of days in the income year. See section 43-210, Subdivision 43-F of the ITAA 1997.

    Apportion the amount if your area is used only partly to produce assessable income (or if relevant partly for the purposes of conducing R&D activities).

    There is a basic entitlement to a rate of 2.5% for parts used as described in table 43-140 Current year use. The rate increases to 4% for parts used as described in table 43-145 Use in the 4% manner.

    Last modified: 05 Nov 2014QC 40267