Residential rental property items
Treatment as depreciating assets or capital works
In Tables 3, 4, 5 and 6, ‘own estimate’ refers to the fact that there was no Commissioner’s determination in effect, and you may make an estimate of the effective life in accordance with the principles set out in the previous column.
Asset |
Deduction for decline in value (effective life in years) for assets acquired before 1 July 2004 |
Deduction for decline in value (effective life in years) for assets acquired from 1 July 2004 |
Capital works deduction |
---|---|---|---|
air conditioning assets |
see Table 5 |
see Table 5 |
- |
cable trays |
- |
- |
Yes |
ceiling fans |
own estimate |
5 |
- |
clocks, electric |
13 1/3 |
10 |
- |
cupboards, other than freestanding |
- |
- |
Yes |
DVD players |
own estimate |
5 |
- |
door closers |
own estimate |
10 |
- |
door locks and latches (excluding electronic code pads) |
- |
- |
Yes |
door stops, fixed |
- |
- |
Yes |
door stops, freestanding |
own estimate |
10 |
- |
electrical assets (including conduits, distribution boards, power points, safety switches, switchboards, switches and wiring) |
- |
- |
Yes |
escalators (machinery and moving parts) |
see Table 4 |
see Table 4 |
|
evaporative coolers |
see Table 6 |
see Table 6 |
- |
facade, fixed |
- |
- |
Yes |
floor coverings, fixed (including cork, linoleum, parquetry, tiles and vinyl) |
- |
- |
Yes |
floor coverings (removable without damage): |
- |
- |
- |
carpet |
10 |
10 |
- |
floating timber |
own estimate |
15 |
- |
linoleum |
10 |
10 |
- |
vinyl |
10 |
10 |
- |
furniture, freestanding |
13 1/3 |
13 1/3 |
- |
garbage bins |
6 2/3 |
10 |
- |
garbage chutes |
- |
- |
Yes |
garbage compacting systems (excluding chutes) |
6 2/3 |
6 2/3 |
- |
generators |
20 |
20 |
- |
grease traps |
- |
- |
Yes |
gym assets: |
- |
- |
- |
cardiovascular |
own estimate |
5 |
- |
resistance |
own estimate |
10 |
- |
hand dryers, electrical |
10 |
10 |
- |
hand rails |
- |
- |
Yes |
heaters: |
- |
- |
- |
fixed: |
- |
- |
- |
ducts, pipes, vents and wiring |
- |
- |
Yes |
electric |
10 |
15 |
- |
fire places (including wood heaters) |
- |
- |
Yes |
gas: |
- |
- |
- |
ducted central heating unit |
own estimate |
20 |
- |
other |
own estimate |
15 |
- |
freestanding |
10 |
15 |
- |
hooks, robe |
- |
- |
Yes |
hot-water systems (excluding piping): |
- |
- |
- |
electric |
20 |
12 |
- |
gas |
20 |
12 |
- |
solar |
20 |
15 |
- |
hot-water system piping |
- |
- |
Yes |
insulation |
- |
- |
Yes |
intercom system assets |
own estimate |
10 |
- |
lift wells |
- |
- |
Yes |
lifts (including hydraulic and traction lifts) |
see Table 4 |
see Table 4 |
- |
lights: |
- |
- |
- |
fittings (excluding hardwired) |
20 |
5 |
- |
fittings, hardwired |
- |
- |
Yes |
freestanding |
own estimate |
5 |
- |
shades, removable |
own estimate |
5 |
- |
Linen |
own estimate |
5 |
- |
master antenna television (MATV) assets: |
- |
- |
- |
amplifiers |
own estimate |
10 |
- |
modulators |
own estimate |
10 |
- |
power sources |
own estimate |
10 |
- |
master antenna television (MATV) assets (excluding amplifiers, modulators and power sources) |
- |
- |
Yes |
mirrors, fixed |
- |
- |
Yes |
mirrors, freestanding |
own estimate |
15 |
- |
Radios |
10 |
10 |
- |
Ramps |
- |
- |
Yes |
Rugs |
own estimate |
7 |
- |
safes, fixed |
- |
- |
Yes |
sanitary fixtures, fixed (including soap dispensers) |
- |
- |
Yes |
satellite dishes |
- |
- |
Yes |
screens |
- |
- |
Yes |
shelving, other than freestanding |
- |
- |
Yes |
shutters |
- |
- |
Yes |
signs, fixed |
- |
- |
Yes |
skylights |
- |
- |
Yes |
solar-powered generating system assets |
own estimate |
20 |
- |
stereo systems (incorporating amplifiers, cassette players, compact disc players, radios and speakers) |
own estimate |
7 |
- |
surround sound systems (incorporating audio-video receivers and speakers) |
own estimate |
10 |
- |
telecommunications assets: |
- |
- |
- |
cordless phones |
own estimate |
4 |
- |
distribution frames |
- |
- |
Yes |
PABX computerised assets |
20 |
10 |
- |
telephone hand sets |
own estimate |
10 |
- |
television antennas, fixed |
- |
- |
Yes |
television antennas, freestanding |
own estimate |
5 |
- |
television sets |
10 |
10 |
- |
vacuum cleaners: |
- |
- |
- |
ducted: |
- |
- |
- |
hoses |
own estimate |
10 |
- |
motors |
own estimate |
10 |
- |
wands |
own estimate |
10 |
- |
portable |
10 |
10 |
- |
vacuum cleaners, ducted (excluding hoses, motors and wands) |
- |
- |
Yes |
ventilation ducting and vents |
- |
- |
Yes |
ventilation fans |
own estimate |
20 |
- |
video cassette recorder systems (VCR) |
own estimate |
5 |
- |
water pumps |
20 |
20 |
- |
water tanks |
- |
- |
Yes |
window awnings, insect screens, louvres, pelmets and tracks |
- |
- |
Yes |
window blinds, internal |
20 |
10 |
- |
window curtains |
6 2/3 |
6 |
- |
window shutters, automatic: |
- |
- |
- |
controls |
own estimate |
10 |
- |
motors |
own estimate |
10 |
- |
window shutters, automatic (excluding controls and motors) |
- |
- |
Yes |
Asset |
Deduction for decline in value (effective life in years) for assets acquired before 1 July 2004 |
Deduction for decline in value (effective life in years) for assets acquired from 1 July 2004 |
Capital works deduction |
---|---|---|---|
accessories, fixed (including mirrors, rails, soap holders and toilet roll holders) |
- |
- |
Yes |
accessories, freestanding (including shower caddies, soap holders, toilet brushes) |
own estimate |
5 |
- |
exhaust fans (including light/heating) |
own estimate |
10 |
- |
fixtures (including baths, bidets, tapware, toilets, vanity units and wash basins) |
- |
- |
Yes |
heated towel rails, electric |
own estimate |
10 |
- |
shower assets (including doors, rods, screens and trays) |
- |
- |
Yes |
shower curtains (excluding curtain rods and screens) |
own estimate |
2 |
- |
spa baths (excluding pumps) |
- |
- |
Yes |
spa bath pumps |
20 |
20 |
- |
Asset |
Deduction for decline in value (effective life in years) for assets acquired before 1 July 2004 |
Deduction for decline in value (effective life in years) for assets acquired from 1 July 2004 |
Capital works deduction |
---|---|---|---|
wardrobes, other than freestanding (incorporating doors, fixed fittings and mirrors) |
- |
- |
Yes |
Asset |
Deduction for decline in value (effective life in years) for assets acquired before 1 July 2003 |
Deduction for decline in value (effective life in years) for assets acquired from 1 July 2003 |
Capital works deduction |
---|---|---|---|
alarms: |
- |
- |
- |
heat |
20 |
6 |
- |
smoke |
20 |
6 |
- |
detection and alarm systems: |
- |
- |
- |
alarm bells |
20 |
12 |
- |
cabling and reticulation |
- |
- |
Yes |
detectors (including addressable manual call points, heat, multi-type and smoke) |
own estimate |
20 |
- |
fire indicator panels |
20 |
12 |
- |
manual call points (non-addressable) |
- |
- |
Yes |
doors, fire and separation |
- |
- |
Yes |
emergency warning and intercommunication systems (EWIS): |
- |
- |
- |
master emergency control panels |
20 |
12 |
- |
speakers |
20 |
12 |
- |
strobe lights |
20 |
12 |
- |
warden intercom phone |
20 |
12 |
- |
extinguishers |
13 1/3 |
15 |
- |
hose cabinet and reels (excluding hoses and nozzles) |
- |
- |
Yes |
hoses and nozzles |
20 |
10 |
- |
hydrant boosters (excluding pumps) |
- |
- |
Yes |
hydrants |
- |
- |
Yes |
lights, exit and emergency |
- |
- |
Yes |
pumps (including diesel and electric) |
20 |
25 |
- |
sprinkler systems (excluding pumps) |
- |
- |
Yes |
stair pressurisation assets: |
- |
- |
- |
AC variable speed drives |
own estimate |
10 |
- |
pressurisation and extraction fans |
own estimate |
25 |
- |
sensors |
own estimate |
10 |
- |
water piping |
- |
- |
Yes |
water tanks |
- |
- |
Yes |
Asset |
Deduction for decline in value (effective life in years) for assets acquired before 1 July 2004 |
Deduction for decline in value (effective life in years) for assets acquired from 1 July 2004 |
Capital works deduction |
---|---|---|---|
cook tops |
own estimate |
12 |
- |
crockery |
own estimate |
5 |
- |
cutlery |
own estimate |
5 |
- |
dishwashers |
own estimate |
10 |
- |
fixtures (including bench tops, cupboards, sinks, tapware and tiles) |
- |
- |
Yes |
freezers |
13 1/3 |
12 |
- |
garbage disposal units |
6 2/3 |
10 |
- |
microwave ovens |
6 2/3 |
10 |
- |
ovens |
own estimate |
12 |
- |
range hoods |
own estimate |
12 |
- |
refrigerators |
13 1/3 |
12 |
- |
stoves |
20 |
12 |
- |
water filters, electrical |
own estimate |
15 |
- |
water filters, fixed (attached to plumbing) |
- |
- |
Yes |
Asset |
Deduction for decline in value (effective life in years) for assets acquired before 1 July 2004 |
Deduction for decline in value (effective life in years) for assets acquired from 1 July 2004 |
Capital works deduction |
---|---|---|---|
clothes dryers |
own estimate |
10 |
- |
fixtures (including tapware, tiles and tubs) |
- |
- |
Yes |
ironing boards, freestanding |
own estimate |
7 |
- |
ironing boards, other than freestanding |
- |
- |
Yes |
Irons |
own estimate |
5 |
- |
washing machines |
6 2/3 |
10 |
- |
Asset |
Deduction for decline in value (effective life in years) for assets acquired before 1 July 2004 |
Deduction for decline in value (effective life in years) for assets acquired from 1 July 2004 |
Capital works deduction |
---|---|---|---|
automatic garage doors: |
- |
- |
- |
controls |
own estimate |
5 |
- |
motors |
own estimate |
10 |
- |
automatic garage doors (excluding controls and motors) |
- |
- |
Yes |
barbecues: |
- |
- |
- |
fixed: |
- |
- |
Yes |
sliding trays and cookers |
own estimate |
10 |
- |
freestanding |
own estimate |
5 |
- |
boat sheds |
- |
- |
Yes |
bollards, fixed |
- |
- |
Yes |
car parks, sealed |
- |
- |
Yes |
carports |
- |
- |
Yes |
clotheslines |
- |
- |
Yes |
driveways, sealed |
- |
- |
Yes |
fencing |
- |
- |
Yes |
floor carpet (including artificial grass and matting) |
own estimate |
5 |
- |
furniture, freestanding |
13 1/3 |
5 |
- |
furniture, other than freestanding |
- |
- |
Yes |
garage doors (excluding motors and controls) |
- |
- |
Yes |
garden awnings and shade structures, fixed |
- |
- |
Yes |
gardening watering installations: |
- |
- |
- |
control panels |
own estimate |
5 |
- |
pumps |
20 |
5 |
- |
timing devices |
own estimate |
5 |
- |
gardening watering installations (excluding control panels, pumps and timing devices) |
- |
- |
Yes |
garden lights, fixed |
- |
- |
Yes |
garden lights, solar |
own estimate |
8 |
- |
garden sheds, freestanding |
own estimate |
15 |
- |
garden sheds, other than freestanding |
- |
- |
Yes |
gates, electrical: |
- |
- |
- |
controls |
own estimate |
5 |
- |
Motors |
own estimate |
10 |
- |
gates (excluding electrical controls and motors) |
- |
- |
Yes |
jetties (including boat sheds and pontoons) |
- |
- |
Yes |
Letterboxes |
- |
- |
Yes |
operable pergola louvres: |
- |
- |
- |
Controls |
own estimate |
15 |
- |
motors |
own estimate |
15 |
- |
operable pergola louvres (excluding controls and motors) |
- |
- |
Yes |
paths |
- |
- |
Yes |
retaining walls |
- |
- |
Yes |
saunas (excluding heating assets) |
- |
- |
Yes |
sauna heating assets |
13 1/3 |
15 |
- |
screens, fixed (including glass screens) |
- |
- |
Yes |
septic tanks |
- |
- |
Yes |
sewage treatment assets: |
- |
- |
- |
controls |
own estimate |
8 |
- |
motors |
own estimate |
8 |
- |
sewage treatment assets (excluding controls and motors) |
- |
- |
Yes |
spas: |
- |
- |
- |
fixed: |
- |
- |
Yes |
chlorinators |
13 1/3 |
12 |
- |
filtration (including pumps) |
13 1/3 |
12 |
- |
heaters (electric or gas) |
13 1/3 |
15 |
- |
freestanding (incorporating blowers, controls, filters, heaters and pumps) |
20 |
17 |
- |
swimming pool assets: |
- |
- |
- |
Chlorinators |
13 1/3 |
12 |
- |
Cleaning |
13 1/3 |
7 |
- |
filtration (including pumps) |
13 1/3 |
12 |
- |
heaters: |
- |
- |
- |
electric |
13 1/3 |
15 |
- |
gas |
13 1/3 |
15 |
- |
solar |
13 1/3 |
20 |
|
swimming pools |
- |
- |
Yes |
tennis court assets: |
- |
- |
- |
cleaners |
own estimate |
3 |
- |
drag brooms |
own estimate |
3 |
- |
nets |
own estimate |
5 |
- |
rollers |
own estimate |
3 |
- |
umpire chairs |
own estimate |
15 |
- |
tennis court assets, fixed (including fences, lights, posts and surfaces) |
- |
- |
Yes |
Asset |
Deduction for decline in value (effective life in years) for assets acquired before 1 July 2004 |
Deduction for decline in value (effective life in years) for assets acquired from 1 July 2004 |
Capital works deduction |
---|---|---|---|
access control systems: |
- |
- |
- |
code pads |
own estimate |
5 |
- |
door controllers |
own estimate |
5 |
- |
readers: |
- |
- |
- |
proximity |
own estimate |
7 |
- |
swipe card |
own estimate |
3 |
- |
closed circuit television systems: |
- |
- |
- |
cameras |
6 2/3 |
4 |
- |
monitors |
6 2/3 |
4 |
- |
recorders: |
- |
- |
- |
digital |
own estimate |
4 |
- |
time lapse |
own estimate |
2 |
- |
switching units (including multiplexes) |
own estimate |
5 |
- |
doors and screens |
- |
- |
Yes |
security systems: |
- |
- |
- |
code pads |
6 2/3 |
5 |
- |
control panels |
6 2/3 |
5 |
- |
detectors (including glass, passive infrared, and vibration) |
6 2/3 |
5 |
- |
global system for mobiles (GSM) units |
6 2/3 |
5 |
- |
noise makers (including bells and sirens) |
6 2/3 |
5 |
- |
Asset |
Deduction for decline in value (effective life in years) for assets acquired before 1 July 2003 |
Deduction for decline in value (effective life in years) for assets acquired from 1 July 2003 |
Capital works deduction |
---|---|---|---|
air conditioning plant: |
- |
See Air conditioning assets (excluding ducting, pipes and vents) |
- |
central type (including ducting and vents) |
13 1/3 |
- |
- |
structural alterations and additions associated with the installation of this plant which forms an integral part of it |
100 |
- |
- |
room units |
10 |
- |
- |
solar-energy powered |
13 1/3 |
- |
- |
To get any publication referred to in this guide:
- go to ato.gov.au/publications, or
- phone 1300 720 092.
Publications
Publications referred to in this guide:
- Small business entity concessions
- Deductions for prepaid expenses 2013
- General value shifting regime: overview of provisions
- Guide to capital gains tax 2013
- Guide to depreciating assets 2013
- PAYG instalments
- Law Administration Practice Statement (General Administration) PS LA 2006/1 (GA) – Calculating the cost base and reduced cost base of a CGT asset if a taxpayer does not have sufficient information to determine the amount of construction expenditure on the asset for the purpose of working out their entitlement to a deduction under Division 43 of the Income Tax Assessment Act 1997
- PAYG withholding variation application (NAT 2036)
- Private ruling application form
- Rental properties - capital works deductions
- Expenses, deductible immediately - management, maintenance, interest
- Rental properties and travel expenses
- Taxation Determination TD 2007/2 – Income tax: should a taxpayer who has incurred a tax loss or made a net capital loss for an income year retain records relevant to the ascertainment of that loss only for the record retention period prescribed under income tax law?
- Taxation Determination TD 2006/31 – Income tax: is a government rebate received by a rental property owner an assessable recoupment under subsection 20-20(3) of the Income Tax Assessment Act 1997, where the owner is not carrying on a property rental business and receives the rebate for the purchase of a depreciating asset (for example, an energy saving appliance) for use in the rental property
- Taxation Determination TD 2005/47 – Income tax: what do the words ‘can deduct’ mean in the context of those provisions in Division 110 of the Income Tax Assessment Act 1997 which reduce the cost base or reduced cost base of a CGT asset by amounts you ‘have deducted or can deduct’, and is there a fixed point in time when this must be determined?
- Taxation Determination TD 1999/42 – Income tax: do the principles set out in Taxation Ruling TR 98/22 apply to line of credit facilities?
- Taxation Ruling TR 2011/2 – Income tax: effective life of depreciating assets (applicable from 1 July 2011)
- Taxation Ruling TR 2010/2 – Income tax: effective life of depreciating assets (applicable from 1 July 2010)
- Taxation Ruling TR 2009/4 – Income tax: effective life of depreciating assets
- Taxation Ruling TR 2008/4 – Income tax: effective life of depreciating assets (applicable from 1 July 2008)
- Taxation Ruling TR 2007/3 – Income tax: effective life of depreciating assets (applicable from 1 July 2007)
- Taxation Ruling TR 2006/15 – Income tax: effective life of depreciating assets (applicable from 1 January 2007) (which replaced Taxation Ruling TR 2006/5 – Income tax: effective life of depreciating assets and TR 2000/18 – Income tax: effective life of depreciating assets)
- Taxation Ruling TR 2004/16 – Income tax: plant in residential rental properties
- Taxation Ruling TR 2004/4 – Income tax: deductions for interest incurred prior to the commencement of, or following the cessation of, relevant income earning activities
- Taxation Ruling TR 2000/2 – Income tax: deductibility of interest on moneys drawn down under line of credit facilities and redraw facilities
- Taxation Ruling TR 98/22 – Income tax: the taxation consequences for taxpayers entering into certain linked or split loan facilities
- Taxation Ruling TR 97/25 – Income tax: property development: deduction for capital expenditure on construction of income producing capital works, including buildings and structural improvements
- Taxation Ruling TR 97/23 – Income tax: deductions for repairs
- Taxation Ruling TR 97/11 – Income tax: am I carrying on a business of primary production?
- Taxation Ruling TR 95/25 – Income tax: deductions for interest under section 8-1 of the Income Tax Assessment Act 1997 following FC of T v. Roberts; FC of T v. Smith
- Taxation Ruling TR 94/11 – Income tax: general investment allowance – what is a unit of property?
- Taxation Ruling TR 94/8 – Income tax: whether business is carried on in partnership (including ‘husband and wife’ partnerships)
- Taxation Ruling TR 93/32 – Income tax: rental property – division of net income or loss between co-owners
- Taxation Ruling TR 93/7 – Income tax: whether penalty interest payments are deductible
- Taxation Ruling IT 2423 – Withholding tax: whether rental income constitutes proceeds of business – permanent establishment – deduction for interest
- Taxation Ruling IT 2316 – Income tax: distribution of partnership profits and losses
- Taxation Ruling IT 2167 – Income tax: rental properties – non-economic rental, holiday home, share of residence, etc. cases, family trust cases
- Individual tax return instructions 2013
- Individual tax return instructions supplement 2013
- International dealings schedule 2013 (NAT 73345)
- Withholding declaration