Question 1

Can I claim wear and tear on the building structure itself?

Accepted Answer

Yes, this is usually claimed under 'Capital Works' deductions, which typically allow for a 2.5% annual deduction over a set period, such as 40 years, provided the property meets specific construction age requirements.

Question 2

Do I need a professional to calculate this?

Accepted Answer

While you can calculate some items yourself, hiring a qualified quantity surveyor is highly recommended. They can identify assets you might miss and provide a ATO-compliant depreciation schedule that maximizes your claim.

Question 3

What happens if I sell the property?

Accepted Answer

When you sell, you must account for the 'balancing adjustment.' If you sell the asset for more than its written-down value, you may have a taxable gain; if less, you may be able to claim a balancing deduction.

Rental Wear and Tear Allowance