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  • Other capital expenses (including capital works deductions)

    You can claim a deduction for the construction costs of buildings and other capital works – such as structural improvements – that are used for producing income.

    The deduction is available for the following capital works:

    • buildings or extensions, alterations or improvements to a building
    • structural improvements such as sealed driveways, fences and retaining walls
    • earthworks for environmental protection, such as embankments.

    You can also claim a deduction for certain business-related capital expenses you incur, as long as you can’t claim a deduction for them under any other part of tax law.

    Examples include the cost of setting up or ceasing a business (commonly known as blackhole expenditure) and project related expenses.

    You can claim blackhole expenditure over five years.

    See also:

    Last modified: 03 Apr 2017QC 33713