Tax Depreciation Basics · Koste Knowledge Base

Can I claim both plant and equipment and capital works?

Published 26 June 2026 · Last updated 26 June 2026

Quick Answer

Yes, where eligible, a property may have both plant and equipment deductions and capital works deductions. The claim depends on the property type, acquisition date, asset history and whether the property is used to produce income.

Many investment properties include both:

Division 40 plant and equipment
Division 43 capital works

For example:

A new apartment may include appliances, carpet, blinds and building structure.
A renovated house may include new appliances and capital works.
A commercial office may include furniture, fit-out, services and building works.
A strata apartment may include both internal assets and common property.

For second-hand residential properties, annual depreciation on existing Division 40 assets may be restricted. However, capital works may still be available.

The key is to identify each category correctly.

Frequently Asked Questions

Can second-hand properties have capital works?

Yes, where eligible.

Can second-hand properties have plant and equipment claims?

Existing used residential assets may be restricted, but new assets may still be claimable.

Do commercial properties have both?

Often yes, especially where there is fit-out.

Who prepares the split?

A qualified quantity surveyor can prepare a depreciation schedule.

Can Koste.ai help?

Yes. Koste.ai supports the depreciation report workflow.

Read Full Article Free Calculator

plant and equipmentcapital worksDivision 40Division 43

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