Show download pdf controls
  • Project pool deductions

    You may be able to claim a deduction for capital expenditure that has a direct connection to a project and that you allocate to a project pool.

    A project is carried on if it involves some form of continuing activity. Holding a less-active investment, would not have sufficient activity to constitute the carrying on of a project. For example, a rental property is a less-active investment.

    The project must be either:

    • operated for a taxable purpose – that is, to produce assessable income
    • carried on or proposed to be carried on for a taxable purpose that you then abandon, sell or otherwise dispose of before or after it started to operate.

    You can't claim a deduction for private or domestic expenditure. For example, the cost of constructing a driveway at your home.

    See also:

    Last modified: 28 May 2021QC 31953