Accountants · Koste Knowledge Base

Why does my accountant need a Division 40 and Division 43 split?

Published 26 June 2026 · Last updated 26 June 2026

Quick Answer

Your accountant needs a Division 40 and Division 43 split because the two categories are claimed differently and may affect CGT differently. Without the split, deductions may be missed, delayed or treated incorrectly.

A depreciation schedule should not simply give one total number.

Accountants need to know:

What is plant and equipment
What is capital works
What is new
What is second-hand
What is residential
What is commercial
What is claimable annually
What is restricted
What may affect CGT
What relates to renovations
What relates to common property

Division 40 generally has effective lives and may provide faster deductions.

Division 43 is building-related and may affect CGT cost base.

For second-hand residential property, the split is essential because existing used Division 40 assets may be restricted while Division 43 capital works may remain claimable.

Frequently Asked Questions

Can my accountant do the split?

Accountants often rely on quantity surveyors for construction and asset cost breakdowns.

Why does the split matter?

Claim timing, eligibility and CGT treatment can differ.

Does this matter for old properties?

Yes, especially for capital works and second-hand asset restrictions.

Does commercial property need this too?

Yes. Commercial fit-outs often need detailed asset separation.

Can Koste.ai help accountants?

Yes. Koste.ai can provide structured property and report information.

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Written by Koste Team · Koste Chartered Quantity Surveyors · AIQS Member · RICS Member · TPB Registered · 1300 669 400 · info@koste.ai