Cgt Cost Base · Koste Knowledge Base

Does Division 43 reduce my CGT cost base?

Published 26 June 2026 · Last updated 26 June 2026

Quick Answer

Division 43 capital works deductions may reduce the CGT cost base of a property when it is sold. This is why investors should keep depreciation schedules, renovation records and capital works summaries.

Capital works deductions are claimed over time for eligible building works.

When a property is sold, capital works deductions that have been claimed, or in some cases were available to be claimed, may need to be considered when calculating the CGT cost base.

This means the accountant may need:

Depreciation schedules
Capital works claimed each year
Construction cost estimates
Renovation invoices
Property use records
Sale records
Ownership history

Division 43 is different from Division 40 plant and equipment. Division 43 is building-related and commonly linked to CGT cost base adjustments.

Koste.ai can help investors organise this information before selling, rather than trying to reconstruct it after settlement.

Frequently Asked Questions

Does every depreciation claim affect CGT?

Not in the same way. Division 43 capital works is particularly relevant.

Should I keep my depreciation schedule?

Yes. It may be needed when selling.

What if I changed accountants?

Keep copies of old schedules and tax returns.

Does this apply to commercial property?

Yes, capital works records can matter for commercial property too.

Can Koste.ai prepare a CGT cost base report?

Yes. Koste.ai can support cost base information for accountant review.

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