1988 to 1999
Depreciation on a property built in 1992
A residential building whose construction began in 1992 is deducted at 2.5% of its construction cost a year, for construction begun after 15 September 1987. Counting from 30 June 1992, its 40 years run from the 1992–93 income year to 2031–32, and from 2026–27 it has 6 income years left. Our national series puts new houses at $460 per m² of floor area in the year to 30 June 1992, 0.7% up on 1991's $457.
- Rate
- 2.5%
- Years left
- 6
- Last year
- 2031–32
What a house built in 1992 cost, state by state
A standard 200 m² single-storey brick veneer house at 1992 rates, less the builder's plant (8.2% of its cost that year), listed separately; the deduction is 2.5% of it a year.
| State | Rate per m² in 1992 | Construction cost | Deduction a year | Left to claim |
|---|---|---|---|---|
| New South Wales | $635 | $109,107 | $2,728 | $16,368 |
| Victoria | $624 | $107,193 | $2,680 | $16,080 |
| Queensland | $524 | $90,042 | $2,251 | $13,506 |
| Western Australia | $354 | $60,793 | $1,520 | $9,120 |
| South Australia | $423 | $72,786 | $1,820 | $10,920 |
| Tasmania | $554 | $95,273 | $2,382 | $14,292 |
| Australian Capital Territory | $658 | $113,033 | $2,826 | $16,956 |
| Northern Territory | $689 | $118,401 | $2,960 | $17,760 |
Indicative. "Left to claim" is the deduction a year times the 6 income years left; the first and last are usually part years.
The cost per m² around 1992
From 1991 to 1992 the standard house's rate per m² held level, from $559 to $559: the 38th steepest of the 40 year-on-year changes since 1985. In 1993 it rose 1%, to $565. At 2025's rates it costs $347,938 to build, 3.6 times its 1992 cost of $96,008, and the deduction is worked from the 1992 figure.
Building in 1992, 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 1992 is the year to 30 June 1992.
The rate per m²
Our national series puts new houses in the year to 30 June 1992 at $460 per m² of floor area, 0.7% up on 1991's $457 and 54% up over the 7 years from 1985's $298, where the series starts.
The average new house
We put the average new house of 1992 at about 190 m² of floor area, read between the ABS figures for 1988 (181 m²) and 1996 (199.6 m²): at 1992's $460 per m², it cost about $88,000 to build.
How the figure was reached
How 1992'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).
1992 in Division 43's history
- 27 February was the year's 58th day: structural improvements begun in its first 57 days, to 26 February, claim nothing, and those begun in its last 309 days claim 2.5% over 40 years.
- Counting the calendar year each began in as its first, 1992 is the 8th year of capital works for homes (from 18 July 1985) and the 6th year of the rate of 2.5% over 40 years (from 16 September 1987).
- 1992 came 25 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 35th of its 40 income years at 2.5%. 6 income years, this one counted, carry 15% of its construction cost; the 85% of the 34 years before is spent, whoever owned it then. The first half of its years ended with 2011–12.
A kitchen replaced ten years on, in 2002, is new capital works with 40 years of its own, claimed until 2042: 10 years past 1992's own last income year, 2031–32. Every renovation since 1992 is the same, whatever the house's own date; its invoices and photos date it.
Renovating a rental built in 1992: 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 1992
In 1992 the builder's plant was about 8.2% of a standard house's cost, listed apart from the building; plant prices stood at 67% 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 46% of its June quarter 2020 level in the June quarter 1992. Fitted in 1992, with each life counted from 30 June 1992 as the building's years are, all 6 below have passed their effective lives, the last in 2003–04; a replacement bought new for a let property starts its own.
| Item | Installed new, 1992 prices | Effective life | Life ends, income year |
|---|---|---|---|
| Oven | $1,060 | 12 years | 2003–04 |
| Cooktop | $417 | 12 years | 2003–04 |
| Dishwasher | $707 | 8 years | 1999–00 |
| Electric hot water system | $961 | 12 years | 2003–04 |
| Carpet | $2,519 | 8 years | 1999–00 |
| Blinds | $961 | 10 years | 2001–02 |
Common questions
How much depreciation can I claim on a house built in 1992?
On a 1992 building, 2.5% of what it cost to construct, each year until 2031–32. For a standard 200 m² brick veneer house that is about $2,728 a year in New South Wales, $2,680 in Victoria and $2,251 in Queensland, with 6 income years left. Plant new to you adds to that, as does any renovation since 1992.
I bought a 1992 property second-hand. Does the deduction start again?
No: a 1992 building's 40 years run from its completion, not from your purchase, so a buyer claims the 6 income years left, 2026–27 to 2031–32, on the original construction cost rather than the price paid. Fitted new in 1992, every one of the 181 kinds of plant our catalogue prices has passed its effective life, the last ending in 2021–22. Section 40-27 reaches plant acquired from 7.30 pm on 9 May 2017, when a 1992 house was 25 years old or so: bought from an earlier owner since then, the plant that came with a 1992 house is generally not deductible (the 2017 rules set out who it reaches and the exceptions).
What was the rate for 1992?
2.5% a year over 40 years, for construction begun after 15 September 1987: counting from 30 June 1992, the 1992–93 to 2031–32 income years. Construction begun on any day of 1992 qualifies, the window having opened on 16 September 1987, and 34 of its 40 income years have passed. Structural improvements begun with it, such as a driveway, fence or retaining wall, straddle a date of their own: those begun before 27 February 1992 are not deductible, and those begun on or after it claim at 2.5% over 40 years.
What did it cost to build a house in 1992?
In the year to 30 June 1992, our national series puts new houses at $460 per m² of floor area, 54% up over the 7 years from 1985's $298, and the average new house, about 190 m², cost about $88,000 to build. At 1992's rates, our standard 200 m² single-storey brick veneer house, less the plant listed separately, cost about $96,008 at the national rate, against $95,969 in 1991 and $97,603 in 1993. In 1992 it was cheapest in Western Australia, at $60,793, and dearest in the Northern Territory, at $118,401. Where the 1992 build's own cost is not documented, a schedule estimates it at 1992's rates, about $96,008 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.