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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. Holding a less-active investment, such as a rental property, would not have sufficient activity to constitute the carrying on of a project.

    The project must be either:

    • operated for a taxable purpose, that is, for the purpose of producing assessable income
    • 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 can't claim a deduction for private or domestic expenditure, such as the cost of constructing a driveway at your home.

    See also:

    Last modified: 15 Jun 2020QC 31953