Items that are commonly found in residential rental properties are in:
- Table 3: Assets – generalExternal Link
- Table 4: MachineryExternal Link
- Table 5: Air conditioning assetsExternal Link
- Table 6: Evaporative coolersExternal Link
The tables are based on the principles in Taxation Ruling TR 2004/16 Income tax: plant in residential rental properties. This ruling sets out whether an item may be eligible for a capital works deduction or a deduction for decline in value. For the latter, the tables include the Commissioner’s determination of effective life (provided such deduction isn't denied under the new rules for second-hand depreciating assets in residential rental properties, or otherwise denied).
For more information, see:
- Working out the effective life yourselfExternal Link
- Limit on deductions for decline in value of second-hand depreciating assetsExternal Link.
We provide these tables to give clarity and certainty about the tax treatment of items in residential rental properties. You can use them to assist you to work out which type of deduction you may be able to claim for your items.
If you have an item for your residential rental property that isn't in the tables, the principles set out below may help you determine the type of deduction that may be available for it. These principles are discussed in Taxation Ruling TR 2004/16 Income tax: plant in residential rental properties.
If you're unable to determine the type of deduction available for an item, or you consider that your circumstances are sufficiently different to warrant a different treatment, you may ask us for a private ruling.
Continue to: Descriptions and examples of rental property itemsExternal Link