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Non-capital costs of ownership

Last updated 3 March 2016

Rates, insurance, land tax, maintenance and interest on money you borrowed to buy the property or finance improvements to it are not included in the reduced cost base. They are only included in the cost base if:

  • the property was acquired under a contract entered into after 20 August 1991 (or if you didn't acquire it under a contract, you became the owner after that date), and
  • you could not claim a deduction for the costs because the property was not used to produce assessable income – for example, it was vacant land, your main residence or a holiday home during the period.