Rental properties – claiming capital works deductions

What are capital works deductions?

Capital works deductions are the following expenses you pay for which you can claim an income tax deduction:

  • building construction costs
  • the cost of altering a building
  • the cost of capital improvements to the surrounding property.

Note: You can only claim a deduction for the capital works on residential rental properties if the properties were built after 17 July 1985.

    Last modified: 04 Aug 2016QC 21620