Can I claim blinds and curtains in a second-hand property?

For properties acquired after 9 May 2017, you cannot claim depreciation on second-hand blinds and curtains in residential properties, unless the property is used for business or is commercial.

How should I record blinds and curtains on my tax return?

Blinds and curtains should be recorded as plant and equipment, with depreciation claimed over their effective life. It's advisable to get a depreciation schedule from a Chartered Quantity Surveyor.

Is there a difference in claiming for commercial vs residential properties?

Yes, commercial properties can claim depreciation on second-hand blinds and curtains, unlike residential properties acquired after 9 May 2017.

Can I claim depreciation if the property is owned by an SMSF?

Yes, an SMSF can claim depreciation on blinds and curtains, but specific rules may apply. It's best to consult a professional for advice.

Are there state-specific rules for claiming blinds and curtains?

Generally, ATO rules apply nationwide. However, it's important to check for any state-specific regulations or incentives that may affect your claims.

Can I Claim New Blinds and Curtains on My Investment Property?

When upgrading your investment property, many landlords wonder if they can claim deductions for new blinds and curtains. The good news is, under Division 40 of the ITAA 1997, blinds and curtains are considered depreciating assets, which means you can claim them as part of your tax deductions.

Blinds and curtains fall under plant and equipment, which are eligible for depreciation over their effective life. This is in contrast to capital works, which are claimed under Division 43. The effective life of blinds and curtains is generally between 5 to 10 years, depending on the material and usage. The most common misconception is that these items are considered part of the building structure, which they are not.

To see how this plays out, consider a practical example. Suppose you own a 3-bedroom rental property in Melbourne and decide to install new blinds and curtains at a cost of $5,000. Assuming an effective life of 8 years and using the diminishing value method, you could claim approximately $625 in the first year. If you're in the 37% tax bracket, this results in a tax saving of around $231 for that year.

In our experience reviewing thousands of properties across Australia, many investors overlook the depreciation on window furnishings. Failing to claim these deductions can result in missed tax savings. It's also common for investors to incorrectly classify these expenses, either as immediate repairs or as part of the building structure, leading to incorrect claims.

The answer can differ depending on your situation. For properties acquired post-9 May 2017, second-hand blinds and curtains in residential properties cannot be claimed unless you are a business or the property is commercial. Pre-1987 buildings or properties owned by a Self-Managed Super Fund (SMSF) may have different considerations. If the property is jointly owned, the deductions must be split according to ownership percentage.

Given the complexities of tax legislation and the variations based on individual circumstances, consulting with a Chartered Quantity Surveyor and your accountant ensures your claims are accurate and maximised. They can provide a detailed depreciation schedule that aligns with ATO guidelines.

Here are some practical steps you can take immediately:

Review your property upgrades and list all plant and equipment.

Consult a Chartered Quantity Surveyor for a detailed depreciation schedule.

Ensure your accountant correctly applies these deductions on your tax return.

Keep all receipts and documentation for your purchases.

Regularly review your depreciation schedule to capture any new additions.

Stay informed about any legislative changes that may impact your claims.

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