Work Out Your Capital Works Deductions DIV43

The capital works deduction is available for:

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

The land itself can’t be written off and its cost isn’t deductible.

The amount you can claim for construction expenses depends on the type of construction and the date you start construction. Your capital works deductions can’t exceed the construction expenses. This table shows the rate of deduction and the period over which you can claim the deduction depending on the type of construction.