Hi,
This question has been asked before but the post is archived and may not be current therefore I am seeking a current answer.
If I have a property that I rent out and it has a fibro (asbestos) roof, and I replace the roof, am I entitled to claim an immediate deduction for the entire cost?
I note the response to the original question references tax ruling TR 2020/2, relating to environmental protection due to the hazardous nature of asbestos.
However, the Asbestos Eradication and Safety Agency themselves provide that (as general advice only, hence why I'm asking here) only the cost of the removal/demolition of the asbestos roof would be able to be claimed as an immediate deduction, because the replacement with a new roof would be considered capital expenditure.
The response to the question asked here replace roof due to Asbestos | ATO Community stated that the entire cost would be able to be claimed as an immediate expense, "if the replacement of the roof was for the dominant purpose of preventing asbestos pollution". This is the logical response, given that the only solution to removing an asbestos roof is replacing it as there is no repair option available to asbestos, and the property needs a roof. Replacing it is not making an improvement to the home (other than preventing the asbestos pollution from a damaged roof of course) as it already had a roof.
However, I am interested to know whether this response is still current and accurate.
As a side note if there were some government incentive to replace asbestos roofs....that someone might know about that I could apply for?
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