Deductibility of scaffolding hire

Discussion in 'Accounting & Tax' started by Jpm, 9th Jun, 2017.

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  1. Jpm

    Jpm Member

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    Hi All

    As part of replacing the tin roof on my ip (with new colorbond) , I've had to hire and setup scaffolding.
    Pitch of roof and slope of land meant I had no choice.

    Is the cost of the scaffold hire claimable as a full deduction or do I have to add it into the roof cost and claim it as part of the 2.5% capital works deduction?

    The gutters and downpipes are also being changed. Is the cost of replacing these claimable as a Lump sum or do I have to add this into the
    Capital works pool as well?

    Scaffolding $2500
    Replacing gutters / downpipes $4k

    Cheers
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Sounds like a capital expense to me, but it is itself not building works so I wouldn't think you could depreciate it.
     
    Ross Forrester likes this.
  3. Scott No Mates

    Scott No Mates Well-Known Member

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    You had no choice?

    WHS requires you to install a system to prevent injury, it is not due to the pitch of the roof in isolation - scaffolding is but one option, others include temporary handrail systems or fall arrestors.

    Who paid for the scaffold ie contractor or you? These may be temporary works. @Paul@PFI @Depreciator
     
  4. Mike A

    Mike A Well-Known Member

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    i cant see why the scaffolding hire wouldnt form part of the cost of the guttering. it would be like arguing the cost of labour isnt guttering itself so it doesnt form part of the cost.

    you need to hire the scaffolding to repair the guttering same as you would need to pay a labourer to replace something. i would think it forms part of the cost of the asset.
     
    Paul@PAS likes this.