Repairs and Maintenance

<p>Repairs &#38; maintenance to either capital works or capital allowance assets on the property. Be aware that repairs to a newly acquired rental property may be considered by the ATO to be a capital works or capital allowance asset. See below &#38; the link.

&#160;</p>

<h3 >Repairs on a newly-acquired rental property</h3>

<p >Initial repairs to rectify damage, defects or deterioration that existed at the time of purchasing a property are capital expenditure and may be claimed as capital works deductions.</p>

<h3 >Replacing capital equipment</h3>

<p >If you have to replace something identifiable as a separate item of capital equipment (such as a complete fence or building, a stove, kitchen cupboards or a refrigerator), you may be able to claim the cost as a capital works deduction or a deduction for decline in value.</p>