Tenant is asking to build stairs from street level, path to the side of the house - to the backyard ground level. The house is sort of split level. They are framing it as a safety issue as there is a gate where they want the stairs built, which opens to about a one meter drop. The gate is usually closed. Please see attached pic. They already got some quotation going for about $3k. What would you recommend here? My understanding from perusing this forum that once it's framed as a safety issue there isn't much that can be done - has to be fixed. But maybe the gate can be permanently shut instead? Is it worthwhile paying for a building inspector to come in to rule whether a safety issue or not? Think since was framed as safety issue now a licensed builder has to build the stairs - does $3k look reasonable to you to build this length of stairs. Since this is a permanent appurtenance to the house, guess the depreciation will have to be done over 40 years?
You have a 2m drop in your yard, How is it otherwise accessible? Probably be a decent value add if you can use the yard. Get a couple of quotes.
From memory BCA states that anything over 1m needs a balustrade and is a safety concern, however I'm not aware that licenced builder has to build it. You could consider something like this: Wilmaplex Treated Pine Ezistep 4 Step Stringer Kit If the walls extend further along then you would need balustrades too.
You could just screw the gate shut to make it safe. I assume there is another way to get to the backyard?
Yes, accessible from another point inside the house. If the gate is screwed shut then it's not possible to access the backyard from the outside/street, only from the inside.
Do they need to access the backyard from the street? For example to get a lawn mower through? (Though that’s going to be pretty tough with stairs!)
Sounds like its an inevitable expense. If someone was injured you could have a legal liability. Check with council as it likely needs approval and must meet code hence using a licensed carpenter / builder. For such a height a landing mid point may be required as well as railings and compliance with tread depth / height etc. The gate could even need rehinging so it opens outwards (?) from top of stairs.
The NCC sets out the requirements very clearly with diagrams. For a height under a metre, requirements are not difficult or onerous. A mid-point landing is not needed for these short stairs. Tread depth and height is standard these days - see the NCC. From memory it’s fine to open the gate outwards (not prohibited) - have you read advice that says otherwise?
But the non-depreciated remainder part can form part of the cost-base for CGT purposes when selling - would that be correct?
If the access via that gate is not necessary from a legal or obvious useability perspective, then I can't see why you wouldn't just seal it shut permanently. If the gate is required, why on earth hasn't there been access from there before now. And why did someone put a gate there in the first place.
I believe so but this is generally the realm of the tax agent to advise on. In general terms, capital costs add to the cost base, while depreciation on capital works lowers it.
$3000 is way way over the top though. Should be < $1000 easily. Build it out of treated pine and oil it each yr.
Stairs might be an safety issue if trying to get a lawnmower down them, particularly if it's a ride-on. A consultant's risk management report on the feasibility of a goods elevator might be in order. And the depreciation might be better, in terms of your tax return....