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  • Lessee or holder of capital works



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

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    A lessee or holder can claim a deduction in respect of an area of capital works leased or held under a quasi-ownership right.

    To claim a deduction, the lessee or holder must have:

    • incurred the construction expenditure or been an assignee of the lessee who incurred the expenditure
    • continuously leased or held the capital works area itself, or leased or held the area that had been so held by previous lessees, holders or assignees since completion of construction, and
    • used the area in a deductible way (which generally means to produce assessable income).

    If there is a lapse in the lease the entitlement to the deduction reverts to the building owner.

    Last modified: 13 Feb 2019QC 44343