Deductions for new aircon install in rental property

 Author: YellowPotato(Taxicorn)Taxicorn

30 Apr 2026

Best to see a tax agent or ask ATO's technical assistance

Can I deduct the installation costs of a new evap cooler in my rental property in the first year and then write off the equipment cost over 10 years?

Installation cost isn't separate to the equipment. Cost base element 4.

• https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/calculating-your-cgt/cost-base-of-asset

Considering you said 'install', the effective life may be a different number than the one you mentioned

May help to read ATO's page on depreciating assets in rental properties

• https://www.ato.gov.au/individuals-and-families/investments-and-assets/property-and-land/residential-rental-properties/rental-expenses/depreciating-assets-in-rental-properties

And using the effective life from legislation. Most likely "Residential property operators" is the correct table to use

• https://www.ato.gov.au/law/view/view.htm?docid=%22OPS%2FLI202520%2F00001%22

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