On the website, it says if a property owner is entitled to a fifty per cent discount on CGT if they have held the property in their name for more than twelve months, from the date of signing the contract

Is this from the date I signed the contract to build a new home, I signed the contract in August 2022 and the house was handed over in April 2024. I have since rented it out as an investment.

Thanks

Troy

Thanks for your comment.

There is usually significant depreciation available to claim in existing properties, although typically less than in a brand-new building. If the original building was constructed post Sept 1987, investors can claim the capital works deduction for the structure.

You can also claim depreciation on renovations including brand new plant and equipment items you may add to the property.

Depending on if the work falls under a repair, maintenance or capital improvement will determine how its depreciated or if it’s classed as an immediate deduction.

Here is an article outlining repairs, maintenance and capital improvements:

Repairs, maintenance and capital improvements for a rental property

Depreciation for capital works reduces a property’s cost base. However, in most circumstances, depreciation is still worth claiming.

Here is an article that explains capital gains tax and depreciation:

Depreciation and capital gains tax

We recommend consulting a financial adviser or accountant before making big decisions.

Thanks,
The BMT Team

Thanks for your comment.

As we are only qualified to provide advice on capital gains tax (CGT) as directly related to depreciation we recommend you consult an accountant or financial advisor.

Thanks,
The BMT Team

Thanks for your comment.

If the veranda only needs removing and replacing in parts and not in its entirety it could be considered a repair and eligible for an immediate deduction.

Otherwise, if it needs to be totally removed and replaced it will be considered a capital improvement and depreciated as capital works.

Thanks,
The BMT Team

Thanks for your comment.

A repair is work done to fix damage on an existing asset. Maintenance is work completed to prevent damage or deterioration of an asset. Both repairs and maintenance costs can be claimed immediately as a deduction.

If an asset has been completely replaced it would typically be depreciable and claimed over the effective life of the asset (in this case, 12 or 15 years depending on if it is an electric, gas or solar hot water service).

If you have further questions or to organise a quote, please get in touch with one of our depreciation specialists on 1300 728 726.

Thanks,
The BMT Team