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.</p>