A lessee can claim a deduction in respect of an area leased or held under a quasi-ownership right.
To claim a deduction, the lessee must have:
- incurred the construction expenditure or been an assignee of the lessee who incurred the expenditure
- continuously leased or held the building itself, or the building must have been held in that way by previous lessees, holders or assignees since completion of construction, and
- used the building to produce assessable income.
If there is a lapse in the lease the entitlement to the deduction reverts to the building owner.