Capital Works Deductions
<p >You can claim a deduction for the construction costs of buildings and other capital works – such as structural improvements – that are used for producing income.
The deduction is available for the following capital works:</p>
<ul >
<li >buildings or extensions, alterations or improvements to a building</li>
<li >structural improvements such as sealed driveways, fences and retaining walls</li>
<li >earthworks for environmental protection, such as embankments.</li>
</ul>
<p >If it is not possible to determine the actual construction costs, you can obtain an estimate from a quantity surveyor or other independent qualified person. You can claim a deduction for the cost of the estimate.
Different deduction rates apply (2.5% or 4.0%) depending on the date on which construction began, the type of capital works, and how it's used.
<strong >See also:</strong></p>
<ul >
<li ><a href="https://www.ato.gov.au/General/Property/In-detail/Rental-properties/Rental-properties---claiming-capital-works-deductions/?page=1#What_are_capital_works_deductions_" >Claiming capital works deductions</a></li>
<li ><a href="http://law.ato.gov.au/atolaw/view.htm?locid=%27PAC/19970038/43-10%27&PiT=99991231235958&anchor=43-10#43-10" class="external" >Division 43 of the ITAA 1997External Link</a> <em >Deductions for capital works</em></li>
</ul>
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