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KellyJeon(Initiate)Initiate
24 June 2021

Hi,

I have client that he is a tenant of permises( not owner of the permises) and he has done fit out for the business. I have 3 questions below.

1. what will be the rate for depreciation for shopfitting?

2. Any current temperary tax depreciation incentive can be applied?

3. It looks like capital work should be 2.5% depreciated, but it does not make sence that this huge amount deducted only 2.5% overtime(40years) as this business does not last longer than that.

17,493 views
3 replies
17,493 views
3 replies

Most helpful response

Most helpful reply

RichATO(Community Support)Community Support
24 June 2021

Hi @KellyJeon


Capital works for shop fit-outs and leasehold improvements are eligible for the capital works deduction normally. And this would attract a depreciation rate of either 2.5% or 4% depending on when the construction started and the effective life of the works completed.


You can read more details about capital works deductions online.


ATO


**edited to reflect accurate information**


All replies

Most helpful reply

RichATO(Community Support)Community Support
24 June 2021

Hi @KellyJeon


Capital works for shop fit-outs and leasehold improvements are eligible for the capital works deduction normally. And this would attract a depreciation rate of either 2.5% or 4% depending on when the construction started and the effective life of the works completed.


You can read more details about capital works deductions online.


ATO


**edited to reflect accurate information**


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Shop fitting depreciation rate as a tenant | ATO Community