1985 to 1987
Depreciation on a property built in 1985
A residential building whose construction began in 1985 was deducted at 4% a year over 25 years, for construction begun between 18 July 1985 and 15 September 1987. Counting from 30 June 1986, the first 30 June it could have been finished by, those years ran from 1986–87 to 2010–11; what still claims is below. Our national series puts new houses at $298 per m² of floor area in the year to 30 June 1985, the first year of our series.
- Rate
- 4%
- Years left
- 0
- Last year
- 2010–11
Construction begun before 18 July 1985 attracts no capital works deduction at all.
What a house built in 1985 cost, state by state
A standard 200 m² single-storey brick veneer house at 1985 rates, less the builder's plant (10.4% of its cost that year), listed separately; the deduction is 4% of it a year.
| State | Rate per m² in 1985 | Construction cost | Deduction a year | Left to claim |
|---|---|---|---|---|
| New South Wales | $367 | $61,452 | run out | — |
| Victoria | $424 | $71,015 | run out | — |
| Queensland | $304 | $51,004 | run out | — |
| Western Australia | $244 | $40,899 | run out | — |
| South Australia | $324 | $54,249 | run out | — |
| Tasmania | $378 | $63,389 | run out | — |
| Australian Capital Territory | $400 | $67,115 | run out | — |
| Northern Territory | $418 | $70,000 | run out | — |
Indicative. Its 25 income years ended in 2010–11.
The cost per m² around 1985
1985 is the cost database's first year, at $354 per m² for the standard house. In 1986 it rose 7%, to $379. At 2025's rates it costs $347,938 to build, 5.9 times its 1985 cost of $59,354, and the deduction is worked from the 1985 figure.
Building in 1985, nationally
The ABS measure: the value of new houses built (land excluded) over their floor area, so it follows the kind of house as well as prices, and its 1985 is the year to 30 June 1985.
The rate per m²
Our national series puts new houses in the year to 30 June 1985 at $298 per m² of floor area, its first year.
The average new house
We put the average new house of 1985 at 162.3 m² of floor area, the ABS's 1985 figure: at 1985's $298 per m², it cost about $48,000 to build.
How the figure was reached
How 1985's figure was arrived at: the published ABS average cost over the published average floor area. It rests on 4 sources and is graded A, from A (a published figure) to D (an assumed rate of growth).
1985 in Division 43's history
- 18 July was the year's 199th day: construction begun in its first 198 days, to 17 July, claims nothing, and that begun in its last 167 days claimed 4% over 25 years.
- 1985 came 2 years before the rate of 2.5% over 40 years (from 16 September 1987), 7 years before structural improvements' claims (from 27 February 1992) and 32 years before section 40-27 on second-hand plant (from 7.30 pm on 9 May 2017).
Where it stands in 2026–27
All 25 of its income years at 4% have passed: the last was 2010–11, 16 income years before 2026–27.
A kitchen replaced ten years on, in 1995, is new capital works with 40 years of its own, claimed until 2035: 24 years past 1985's own last income year, 2010–11. Every renovation begun after 15 September 1987 is the same, whatever the house's own date (those begun before then have run out or were never deductible); its invoices and photos date it.
Renovating a rental built in 1985: the old plant and works Houses of 1985 to 1987 beside the other years Using a previous owner's scheduleA standard house's plant, fitted new in 1985
In 1985 the builder's plant was about 10.4% of a standard house's cost, listed apart from the building; plant prices stood at 47% of 2020's by our plant index, and the ABS house construction price index for Australia (before the June quarter 1986, the ABS index of the prices of materials used in house construction for the weighted average of the six state capitals, linked at that quarter) stood at 29% of its June quarter 2020 level in the June quarter 1985. The plant's own prices start in 1990, so 1985's are 1990's taken back by the plant index, which put 1985's prices at 73% of 1990's. Fitted in 1985, with each life counted from 30 June 1985 as the building's years are, all 6 below have passed their effective lives, the last in 1996–97; a replacement bought new for a let property starts its own.
| Item | Installed new, 1985 prices | Effective life | Life ends, income year |
|---|---|---|---|
| Oven | $746 | 12 years | 1996–97 |
| Cooktop | $293 | 12 years | 1996–97 |
| Dishwasher | $497 | 8 years | 1992–93 |
| Electric hot water system | $676 | 12 years | 1996–97 |
| Carpet | $1,771 | 8 years | 1992–93 |
| Blinds | $676 | 10 years | 1994–95 |
Common questions
How much depreciation can I claim on a house built in 1985?
On a 1985 building, nothing is left: begun on or after 18 July 1985, its 25 years at 4% ended in 2010–11, by when they had written off the whole of its construction cost, about $61,452 for a standard 200 m² brick veneer house in New South Wales; begun before that day, it never had any. What can still be claimed on a 1985 house is every renovation and improvement begun after 15 September 1987 (each at 2.5% for 40 years from its own completion; those begun before then have run out or were never deductible) and plant you buy new for the property while it is let.
I bought a 1985 property second-hand. Does the deduction start again?
No: a 1985 building's years run from its completion, not from your purchase: begun on or after 18 July 1985, its 25 years ended in 2010–11; begun before that day, it never had any. Either way nothing is left to claim on the original building. Fitted new in 1985, every one of the 181 kinds of plant our catalogue prices has passed its effective life, the last ending in 2014–15. Section 40-27 reaches plant acquired from 7.30 pm on 9 May 2017, when a 1985 house was 32 years old or so: bought from an earlier owner since then, the plant that came with a 1985 house is generally not deductible (the 2017 rules set out who it reaches and the exceptions).
What was the rate for 1985?
4% a year over 25 years, for construction begun between 18 July 1985 and 15 September 1987: counting from 30 June 1986, the 1986–87 to 2010–11 income years. Construction begun before 18 July 1985 attracts no capital works deduction at all. Structural improvements such as a driveway, fence or retaining wall begun with a 1985 house claim nothing, as none begun before 27 February 1992 does; one begun on or after it claims at 2.5% over 40 years.
What did it cost to build a house in 1985?
In the year to 30 June 1985, our national series puts new houses at $298 per m² of floor area, and the average new house, about 162 m², cost about $48,000 to build. At 1985's rates, our standard 200 m² single-storey brick veneer house, less the plant listed separately, cost about $59,354 at the national rate, against $63,818 in 1986. In 1985 it was cheapest in Western Australia, at $40,899, and dearest in Victoria, at $71,015. Where the 1985 build's own cost is not documented, a schedule estimates it at 1985's rates, about $59,354 for that house nationally, by an appropriately qualified person, as Taxation Ruling TR 97/25 accepts.
General information only, not advice about your circumstances. Speak to a registered tax agent before relying on it.