Not one of a number of identical or substantially identical items



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End of attention

Items are identical if they are the same in all respects.

Items are substantially identical if they are the same in most respects even though there may be some minor or incidental differences. Factors you would consider include colour, shape, function, texture, composition, brand and design.

You do not take assets into account that you acquired in another income year.


Substantially identical items

(The impact of the GST is ignored in this example).

Jan buys three kitchen stools for her rental property in the 2003-04 income year. The stools are all wooden and of the same design, however, they are different colours. The colour of the stools is only a minor difference which is not enough to conclude that the stools are not substantially identical. The stools cost $150 each. Jan cannot claim an immediate deduction for the cost of each individual stool because they are substantially identical and their total cost exceeds $300.


Not substantially identical items

Jan also buys some chairs for her rental property: a canvas chair for the patio, a high back wooden chair for the bedroom dressing table and a leather executive chair for the study. While these are all chairs, they are not identical or substantially identical. The cost of each of the chairs can be claimed as an immediate deduction if it is $300 or less.

Last modified: 31 Oct 2005QC 27521