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  • Project pool deductions

    If you have capital expenditure directly connected with a project, you may be able to claim a deduction for capital expenditure allocated to a project pool.

    A project is carried on if it involves some form of continuing activity - not a less-active investment, such as a rental property.

    The project must be:

    • operated for a taxable purpose
    • carried on or proposed to be carried on for a taxable purpose which was abandoned, sold or otherwise disposed of before or after it started to operate.

    You cannot claim a deduction for:

    • private or domestic expenditure, such as the cost of constructing a driveway at your home
    • capital expenditure directly connected with a project undertaken in carrying on a business.
    • See also:
    • Guide to depreciating assets (NAT 1996)
    Last modified: 24 May 2016QC 31953