1988 to 1999
Depreciation on a property built in 1990
A residential building whose construction began in 1990 is deducted at 2.5% of its construction cost a year, for construction begun after 15 September 1987. Counting from 30 June 1990, its 40 years run from the 1990–91 income year to 2029–30, and from 2026–27 it has 4 income years left. Our national series puts new houses at $437 per m² of floor area in the year to 30 June 1990, 8% up on 1989's $406.
- Rate
- 2.5%
- Years left
- 4
- Last year
- 2029–30
What a house built in 1990 cost, state by state
A standard 200 m² single-storey brick veneer house at 1990 rates, less the builder's plant (8.5% of its cost that year), listed separately; the deduction is 2.5% of it a year.
| State | Rate per m² in 1990 | Construction cost | Deduction a year | Left to claim |
|---|---|---|---|---|
| New South Wales | $624 | $106,890 | $2,672 | $10,688 |
| Victoria | $623 | $106,658 | $2,666 | $10,664 |
| Queensland | $505 | $86,422 | $2,161 | $8,644 |
| Western Australia | $379 | $64,894 | $1,622 | $6,488 |
| South Australia | $407 | $69,672 | $1,742 | $6,968 |
| Tasmania | $505 | $86,496 | $2,162 | $8,648 |
| Australian Capital Territory | $529 | $90,527 | $2,263 | $9,052 |
| Northern Territory | $670 | $114,812 | $2,870 | $11,480 |
Indicative. "Left to claim" is the deduction a year times the 4 income years left; the first and last are usually part years.
The cost per m² around 1990
From 1989 to 1990 the standard house's rate per m² rose 6%, from $522 to $551: the 11th steepest of the 40 year-on-year changes since 1985. In 1991 it rose 1% again, to $559. At 2025's rates it costs $347,938 to build, 3.7 times its 1990 cost of $94,440, and the deduction is worked from the 1990 figure.
Building in 1990, 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 1990 is the year to 30 June 1990.
The rate per m²
Our national series puts new houses in the year to 30 June 1990 at $437 per m² of floor area, 8% up on 1989's $406 and 47% up over the 5 years from 1985's $298, where the series starts.
The average new house
We put the average new house of 1990 at about 186 m² of floor area, read between the ABS figures for 1988 (181 m²) and 1996 (199.6 m²): at 1990's $437 per m², it cost about $81,000 to build.
How the figure was reached
How 1990's figure was arrived at: between the 1988 and 1996 figures, following the ABS input to house construction index. It rests on 1 source and is graded C, from A (a published figure) to D (an assumed rate of growth).
1990 in Division 43's history
- Counting the calendar year each began in as its first, 1990 is the 6th year of capital works for homes (from 18 July 1985) and the 4th year of the rate of 2.5% over 40 years (from 16 September 1987).
- 1990 came 2 years before structural improvements' claims (from 27 February 1992) and 27 years before section 40-27 on second-hand plant (from 7.30 pm on 9 May 2017).
Where it stands in 2026–27
2026–27 is the 37th of its 40 income years at 2.5%. 4 income years, this one counted, carry 10% of its construction cost; the 90% of the 36 years before is spent, whoever owned it then. The first half of its years ended with 2009–10.
A kitchen replaced ten years on, in 2000, is new capital works with 40 years of its own, claimed until 2040: 10 years past 1990's own last income year, 2029–30. Every renovation since 1990 is the same, whatever the house's own date; its invoices and photos date it.
Renovating a rental built in 1990: the old plant and works Houses of 1988 to 1999 beside the other years Using a previous owner's scheduleA standard house's plant, fitted new in 1990
In 1990 the builder's plant was about 8.5% of a standard house's cost, listed apart from the building; plant prices stood at 64% of 2020's by our plant index, and the ABS house construction price index for Australia (before the September quarter 1996, the ABS project home price index for the weighted average of the eight capitals, linked to it over the four quarters to June 1999) stood at 45% of its June quarter 2020 level in the June quarter 1990. Fitted in 1990, with each life counted from 30 June 1990 as the building's years are, all 6 below have passed their effective lives, the last in 2001–02; a replacement bought new for a let property starts its own.
| Item | Installed new, 1990 prices | Effective life | Life ends, income year |
|---|---|---|---|
| Oven | $1,024 | 12 years | 2001–02 |
| Cooktop | $403 | 12 years | 2001–02 |
| Dishwasher | $683 | 8 years | 1997–98 |
| Electric hot water system | $928 | 12 years | 2001–02 |
| Carpet | $2,432 | 8 years | 1997–98 |
| Blinds | $928 | 10 years | 1999–00 |
Common questions
How much depreciation can I claim on a house built in 1990?
On a 1990 building, 2.5% of what it cost to construct, each year until 2029–30. For a standard 200 m² brick veneer house that is about $2,672 a year in New South Wales, $2,666 in Victoria and $2,161 in Queensland, with 4 income years left. Plant new to you adds to that, as does any renovation since 1990.
I bought a 1990 property second-hand. Does the deduction start again?
No: a 1990 building's 40 years run from its completion, not from your purchase, so a buyer claims the 4 income years left, 2026–27 to 2029–30, on the original construction cost rather than the price paid. Fitted new in 1990, every one of the 181 kinds of plant our catalogue prices has passed its effective life, the last ending in 2019–20. Section 40-27 reaches plant acquired from 7.30 pm on 9 May 2017, when a 1990 house was 27 years old or so: bought from an earlier owner since then, the plant that came with a 1990 house is generally not deductible (the 2017 rules set out who it reaches and the exceptions).
What was the rate for 1990?
2.5% a year over 40 years, for construction begun after 15 September 1987: counting from 30 June 1990, the 1990–91 to 2029–30 income years. Construction begun on any day of 1990 qualifies, the window having opened on 16 September 1987, and 36 of its 40 income years have passed. Structural improvements such as a driveway, fence or retaining wall begun with a 1990 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 1990?
In the year to 30 June 1990, our national series puts new houses at $437 per m² of floor area, 47% up over the 5 years from 1985's $298, and the average new house, about 186 m², cost about $81,000 to build. At 1990's rates, our standard 200 m² single-storey brick veneer house, less the plant listed separately, cost about $94,440 at the national rate, against $89,060 in 1989 and $95,969 in 1991. In 1990 it was cheapest in Western Australia, at $64,894, and dearest in the Northern Territory, at $114,812. Where the 1990 build's own cost is not documented, a schedule estimates it at 1990's rates, about $94,440 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.