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AskingYou4Help(Initiate)Initiate
30 June 2024

The council my property sits in recently doubled the water pressure to the whole town. Due to this, my old plumbing sprang a huge leak. (It was a massive issue within many properties across the neighbourhood).


I have 4 apartments and it was not possible to tell the exact location of the leak as it was under slab. Due to this my plumber made a call that it was much easier to instal new above ground external plumbing then to attempt digging up slab in multiple locations disturbing 4 seperate tenancies.


Is the plumbing work done considered a capital expense or repairs and maintenance come tax time?

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3 replies
991 views
3 replies

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Most helpful reply

TeddyATO(Community Support)Community Support
3 July 2024

Hello @AskingYou4Help,


As it's a complete replacement of a fixed asset it would be a capital work. If it was only a small piece or part of the plumbing system, it could possibly have been a repair. But yours is a complete change to the plumbing structure.


You can find an explanation of the differences and how you can claim in the guide to rental properties 2024.

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Most helpful reply

TeddyATO(Community Support)Community Support
3 July 2024

Hello @AskingYou4Help,


As it's a complete replacement of a fixed asset it would be a capital work. If it was only a small piece or part of the plumbing system, it could possibly have been a repair. But yours is a complete change to the plumbing structure.


You can find an explanation of the differences and how you can claim in the guide to rental properties 2024.

jakson(I'm new)I'm new
24 June 2025

In most cases, the cost of installing new plumbing, especially if it's a significant upgrade like yours, is usually considered a capital expense rather than a repair. However, it can vary based on local tax rules, so it’s a good idea to consult with a tax professional to be sure. If you ever need any help with plumbing issues or have more questions, feel free to reach out to a reliable [removed by moderator]

RachelATO(Community Moderator)Community Moderator
25 June 2025

Hi @jakson,


Repairs to an 'entirety' are capital expenses, because they generally involve the replacement or reconstruction of something separately identifiable. We have info here to explain more about when your costs are a repair or capital.


We also have a tax ruling you can refer to. It sets out the circumstances in which an expense for a repair is allowable as an immediate deduction.

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New Plumbing due to a leak under slab. Repairs and maintenance or capital expense? | ATO Community