Repairs vs Capital Works: What's Deductible and What's Not?

Explore how to distinguish deductible repairs from capital works with insights from fresh rulings and case law.

In this session, we cover:

• Tax treatment of repairs

• Legal framework

  • Section 25-10 ITAA 1997

  • Div 40 and Div 43 ITAA 1997

• Repairs

  • Repairs v entirety

    • TR 97/23

  • Repairs v improvements

    • Wulf and CoT [2022] AATA 3094 ​

  • Repairs v replacements

  • Repairs v additions

  • Repairs v maintenance

  • Initial Repairs

  • Notional Repairs

    • FCT v Western Suburbs Cinema Ltd [1952] HCA 28​

• Body corporate

• Environmental protection activities

  • Section 40-755 of the ITAA 1997 ​

• Substantiation and apportionment

Date recorded: 19 August 2025