Items that are commonly found in residential rental properties are in Table 3, Table 4, Table 5 and Table 6.
The tables, based on the principles in Taxation Ruling TR 2004/16 – Income tax: plant in residential rental properties, set out whether an item may be eligible for a capital works deduction or a deduction for decline in value and, for the latter, the Tables include the Commissioner’s determination of effective life. For more information, see Which effective life can you use?
The tables are provided to give clarity and certainty about the tax treatment of items in residential rental properties. You can use them to assist you to work out which type of deduction you may be able to claim for your items.
You may be able to claim the deduction indicated in the Tables for items relating to your residential rental property. If you have an item for your residential rental property that is not in the Tables, the principles set out below may help you determine the type of deduction that may be available for it. These principles are more fully discussed in Taxation Ruling TR 2004/16.
If you are unable to determine the type of deduction available for an item, or you consider that your circumstances are sufficiently different to warrant a different treatment, you may ask us for a private ruling.