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Commercial Property · Koste Knowledge Base

Can I claim depreciation on an office fit-out?

Quick Answer

Yes, office fit-outs can often attract depreciation deductions if the fit-out is used for income-producing or business purposes. The claim depends on who paid for the fit-out, who owns the assets, and whether items are treated as plant and equipment or capital works.

Office fit-outs often contain a mix of depreciating assets and capital works.

Typical office fit-out items include:

  • Workstations
  • Loose furniture
  • Built-in joinery
  • Partitions
  • Carpet tiles
  • Vinyl or other floor finishes
  • Blinds
  • Lighting
  • Electrical works
  • Data cabling
  • Security systems
  • Air conditioning works
  • Kitchen appliances
  • Meeting room equipment
  • Signage
  • Reception counters
  • Storage units
The important question is ownership.

A landlord may own the base building. A tenant may pay for the fit-out. Sometimes a landlord contributes through a lease incentive. Sometimes both parties pay for different parts of the works.

A depreciation schedule helps separate:

  • Tenant-owned plant and equipment
  • Landlord-owned assets
  • Leasehold improvements
  • Division 40 assets
  • Division 43 capital works
  • Items that may be claimed over shorter or longer periods
  • Assets that may be scrapped or abandoned later
Without a proper breakdown, a business owner or accountant may treat the entire fit-out as one broad cost. This can lead to missed deductions or incorrect treatment.

Koste.ai can help business owners and accountants identify the key information required before a formal office fit-out depreciation report is prepared.

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