Tax Depreciation Basics · Koste Knowledge Base

What is Division 43 capital works?

Published 26 June 2026 · Last updated 26 June 2026

Quick Answer

Division 43 capital works generally relates to eligible building structure and construction costs. This can include the building, extensions, renovations, structural improvements and certain fixed works claimed over time.

Division 43 is often called capital works.

It may include:

Building structure
Walls
Roof
Slabs
Concrete
Tiling
Built-in cupboards
Structural improvements
Extensions
Renovations
Bathrooms
Kitchens
Outdoor structures
Common property works
Commercial building works

For many residential and commercial properties, capital works are claimed over time, often at 2.5% per year for eligible construction costs.

Division 43 is especially important for:

New properties
Renovated properties
Second-hand properties
Apartments with common property
Commercial buildings
Properties where invoices are unavailable

A quantity surveyor can estimate eligible construction costs where actual records are not available.

Frequently Asked Questions

Is Division 43 still claimable on second-hand property?

It may be, where the building or improvements qualify.

Can previous owner renovations be claimed?

Capital works from previous owner renovations may be claimable in some cases.

Does Division 43 affect CGT?

Capital works deductions may affect the CGT cost base when the property is sold.

Do I need invoices?

If invoices are not available, a quantity surveyor may estimate construction costs.

Can Koste.ai help identify capital works?

Yes. Koste.ai can help guide a depreciation or CGT cost base 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