Show download pdf controls
  • Amount of deduction

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    The following rules apply for residential rental properties:

    • If construction of the building started before 18 July 1985, you cannot claim a capital works deduction (special building write-off).
    • If construction of the building started between 18 July 1985 and 15 September 1987, the annual capital works deduction (special building write-off) allowable is 4 per cent of the construction expenditure.
    • If construction of the building started after 15 September 1987, the annual capital works deduction (special building write-off) allowable is 2.5 per cent of the construction expenditure.

    The deduction can be claimed for 25 years from the date construction was completed in the case of a 4 per cent deduction, and 40 years from the date construction was completed in the case of a 2.5 per cent deduction.

    Deductions may also be allowable for structural improvements undertaken after 26 February 1992. Examples of structural improvements include sealed driveways, retaining walls and fences.

    Last modified: 28 Jul 2003QC 16187