Join Australia's most dynamic and respected property investment community

Termite Barrier

Discussion in 'Accounting & Tax' started by Frosty123, 26th May, 2016.

  1. Frosty123

    Frosty123 Well-Known Member

    Joined:
    12th Nov, 2015
    Posts:
    54
    Location:
    VIC
    Hi all,

    Is a termite barrier able to have an immediate deduction for an investment property?
    I understand that it isn't a 'repair' as such, but it is a form of maintenance to ensure the property remains in the state it is in.
    Any insight would be appreciated :)

    Thanks
     
  2. Rob G

    Rob G Well-Known Member

    Joined:
    16th Oct, 2015
    Posts:
    167
    Location:
    Melbourne
    Adding a termite barrier is usually a capital expense.

    It is more than mere maintenance.

    Previously there was no barrier, so the function is now improved by the property being more termite resistant - not a repair.

    It is a once-off expense for a lasting benefit - a capital outgoing.

    It will usually form part of the building construction cost that may be written off over 40 years using the capital works provisions (your area of capital works).