What is a capital works deduction?

Capital works include a buildings structure, structural improvements and any permanently fixed items such as cupboards, sinks doors, fences.  

Capital works deductions (division 43) can be claimed on income producing property and will form a large part of a tax depreciation claim.  

The ATO identify capital works deductions being available for;  

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

Differing depreciation rates apply based on property type, construction date and industry. The team at Acumentis will assist to ensure you apply the correct depreciation rates and accurate construction costs to your tax depreciation claim. 

Deductible capital works items include:

 

Residential Property (Unit/Townhouse)
  • Baths, showers, sinks, toilet bowls
  • Building structure
  • Cabinets
  • Car parks
  • Doors, locks and handles
  • Swimming Pool

 

Residential Property (House)
  • Baths, showers, sinks, toilet bowls
  • Bricks and mortar
  • Doors, lock and handles
  • Fences
  • Retaining Walls
  • Swimming pool

 

Commercial Property
  • Bricks and mortar
  • Car parks
  • Doors and windows
  • Lifts
  • Sinks, basins and toilet bowls
  • Partitions

 

 

Agribusiness
  • Dams
  • Fencing
  • Irrigation
  • Sheds and shade structures
  • Silos
  • Water tanks

 

Why choose Acumentis

Have one point of contact for all your client’s property needs.

Knowledge and experience

Our registered team of professionally certified valuers are experts across commercialresidential and rural and agribusiness property types. We know what depreciable items to look for ensuring that you get a comprehensive ATO approved depreciation schedule prepared by our certified Quantity Surveyors.

Value

We’ll provide you with one tax depreciation schedule that lasts up to 40 years of claim and the fee is 100% tax deductible. We can also undertake a retrospective tax depreciation schedule if you haven’t been claiming deductions so that you don’t miss the tax benefits.

National reach

Wherever you are in Australia a qualified Acumentis property professional is nearby. With over 300 property professionals working from 45 offices in metropolitan, regional and rural Australia our team have your property and tax depreciation needs covered.