Suppose If I carry whole bathroom renovations as a capital work. And also while doing so If I had incur few expenses which is less than 300$ , can I choose to claim those and repairs and remaining huge expenses as capital expenditure.
Repairs generally involve a replacement or renewal of a worn out or broken part, for example, replacing worn or damaged curtains, blinds or carpets between tenants. Maintenance generally involves keeping the property in a tenantable condition, for example repainting faded or damaged interior walls.
However, expenses which are capital, or of a capital nature are not deductible as repairs or maintenance. The following are examples of expenses which are capital or of a capital nature:
Based on what you have told us, you are undertaking a full bathroom renovation, which we assume is for a rental property, which is an improvement and capital in nature.
You may be able to claim some construction expenses as capital works deductions. For more information, see Capital works deductions.
Expenses of a capital nature may form part of the cost base of the property for capital gains tax purposes (but not generally to the extent that capital works deductions have been or can be claimed for them).
Assets costing $300 or less can be claimed as an immediate deduction, in the income year you used the asset for a taxable purpose. You cannot claim an immediate deduction if the asset is part of a set of assets that in total cost more than $300.
For more information, see Guide to capital gains tax 2024 and Rental expenses.
Repairs generally involve a replacement or renewal of a worn out or broken part, for example, replacing worn or damaged curtains, blinds or carpets between tenants. Maintenance generally involves keeping the property in a tenantable condition, for example repainting faded or damaged interior walls.
However, expenses which are capital, or of a capital nature are not deductible as repairs or maintenance. The following are examples of expenses which are capital or of a capital nature:
Based on what you have told us, you are undertaking a full bathroom renovation, which we assume is for a rental property, which is an improvement and capital in nature.
You may be able to claim some construction expenses as capital works deductions. For more information, see Capital works deductions.
Expenses of a capital nature may form part of the cost base of the property for capital gains tax purposes (but not generally to the extent that capital works deductions have been or can be claimed for them).
Assets costing $300 or less can be claimed as an immediate deduction, in the income year you used the asset for a taxable purpose. You cannot claim an immediate deduction if the asset is part of a set of assets that in total cost more than $300.
For more information, see Guide to capital gains tax 2024 and Rental expenses.
15 Apr 2026 · 4 min read time
15 Apr 2026 · 8 min read time
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