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 - not a less-active investment, such as a rental property.

The project must be:

  • operated for a taxable purpose
  • 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 cannot claim a deduction for:

  • private or domestic expenditure, such as the cost of constructing a driveway at your home
  • capital expenditure directly connected with a project undertaken in carrying on a business.
  • See also:
  • Guide to depreciating assets (NAT 1996)
Last modified: 24 May 2016QC 31953