Fire remediation work - repair or capital?

An apartment I have in a high-rise required some fire remediation. This was not cladding. It was properly insulating the wiring holes between all the apartments and things like that. We were charged a fire remediation special levy to cover it. Do you think this is repair or capital in nature?

If it is capital, depreciate over 40 years? Hope not...

 

Sadly, Peter, I reckon you're in Cap Works territory i.e. 2.5%. It was not a repair, but additional works to make something comply. I hope the levy was not too much.
Scott

 

Oh but it was!

 

And even it it was a repair its potentially an initial repair making it non-deductible. The Div 43 is more evident however allowing capital works on building works. The levy itself isnt subject to capital allowances. Instead you may need to have the QS report updated to refelct the total spend and your share including your own strata unit and your share of common property. Reach out to your QS report provider who may ask for strata info on how the funds were spent. Sometimes its more than one matter and part could be deductible.

The other bummer we see in this area is you paid the levy but the works are not yet completed. Sometimes the delay can be a year or two. Only when the works are completed is the matter eligible.