A fund's entitlement to a deduction begins on the date the building is first used to produce assessable income. The first and last years of use may be apportioned. The entitlement to a deduction runs for either 25 or 40 years (the limitation period) depending on the rate of deduction applicable.
The legislation contains two calculation provisions:
- section 43-215 of the ITAA 1997, deduction for capital works which began before 27 February 1992
- section 43-210 of the ITAA 1997, deduction for capital works which began after 26 February 1992.