TR 97/25: Understanding the Basis of Division 43 Claims and Quantity Surveying Estimates

Are you maximizing your Division 43 claims correctly? Division 43 of the Income Tax Assessment Act 1997 allows property owners to claim deductions for the decline in value of capital works, but ensuring the correct application of these rules is crucial. Taxation Ruling TR 97/25 provides guidance on the basis of Division 43 claims and the role of quantity surveying estimates in supporting those claims.

Here’s what you need to know to make sure your claims are compliant and effective.

What is Division 43?

Division 43, often referred to as the "Capital Works Deduction," allows property owners to claim a tax deduction on the structural elements of a building, such as brickwork, concrete, roofing, and other integral features. This deduction applies to buildings used for income-producing purposes, including rental properties, commercial buildings, and some home offices.

Key Points of TR 97/25: Basis of Division 43 Claims

1. Eligible Capital Works:
2. Role of Quantity Surveyors in Division 43 Claims:
3. Supporting Evidence for Claims:

Why It’s Important to Get Division 43 Claims Right

Incorrectly claiming capital works deductions can lead to ATO audits, penalties, and adjustments. TR 97/25 underscores that reliable quantity surveying estimates are critical for substantiating claims and maximizing your tax benefits without running afoul of tax laws.

Take Action: Review Your Division 43 Claims Today!

Are you confident in your Division 43 claims and the estimates supporting them? Partnering with experienced quantity surveyors and tax professionals ensures your claims are both accurate and fully compliant with TR 97/25. Don’t leave potential deductions on the table—schedule a consultation with us today to review your property and optimize your capital works deductions! Contact us at [email protected] or click here https://calendly.com/patrick-chu-i8o/one-to-one-meeting to book your appointment. Let us help you make the most of your property investments!