Calculation and rate of deduction

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A fund’s entitlement to a deduction must be worked out having regard to the date the building is first used to produce assessable income after construction is completed. 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.