Frequently Asked Questions

Why is division 40 not claimable?

Due to legislation changes in 2017, plant & equipment (division 40 – e.g. lights, blinds, appliances, flooring) can no longer be claimed in every scenario. Essentially, second-hand plant & equipment can no longer be claimed for residential tax depreciation. Some of the following scenarios describe where division 40 cannot be claimed:

  • Purchasing a second-hand property and not installing any new plant & equipment in it.
  • Purchasing a brand new property and living in it (for any amount of time) before renting it out.
  • Installing new items in your property while living in it before renting it out.

There is an exemption for companies that can still claim division 40 in any of these circumstances.

If you purchased a property second-hand and installed some new items in it while the property was vacant or rented, you will be eligible to claim these costs. If your report does not show those items as claimable in your report, please reply to the email we sent you, and we will be happy to update your report at no cost.

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