Renovating · Koste Knowledge Base

Can I claim flooring replacement in a rental property?

Published 26 June 2026 · Last updated 26 June 2026

Quick Answer

Flooring replacement may be deductible, depreciable or capital works depending on what was replaced, why it was replaced and the type of flooring. Carpet, tiles, timber flooring and vinyl can each have different treatment.

Flooring is a common area of confusion.

Examples:

Carpet replacement
Vinyl replacement
Timber flooring
Hybrid flooring
Tiles
Polished concrete
Commercial flooring
Common area flooring

Tax treatment depends on:

Whether it is a repair or full replacement
Whether it improves the property
Whether the asset is plant or capital works
Whether the property was rented at the time
Whether it replaces second-hand assets
Whether old flooring is scrapped

Carpet is commonly treated as a Division 40 asset. Tiling and structural flooring may be capital works. Context matters.

Frequently Asked Questions

Is carpet depreciable?

Carpet is commonly treated as a depreciating asset, subject to the rules.

Are tiles capital works?

Tiling is often treated as capital works, but context matters.

Can I claim old flooring removed?

There may be a scrapping opportunity if documented.

Is flooring a repair?

Sometimes, but full replacement may be capital.

Can Koste.ai help classify flooring?

Yes. Koste.ai can support renovation cost separation.

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