1988 to 1999
Depreciation on a property built in 1994
A residential building whose construction began in 1994 is deducted at 2.5% of its construction cost a year, for construction begun after 15 September 1987. Counting from 30 June 1994, its 40 years run from the 1994–95 income year to 2033–34, and from 2026–27 it has 8 income years left. Our national series puts new houses at $508 per m² of floor area in the year to 30 June 1994, 5% up on 1993's $484.
- Rate
- 2.5%
- Years left
- 8
- Last year
- 2033–34
What a house built in 1994 cost, state by state
A standard 200 m² single-storey brick veneer house at 1994 rates, less the builder's plant (7.4% of its cost that year), listed separately; the deduction is 2.5% of it a year.
| State | Rate per m² in 1994 | Construction cost | Deduction a year | Left to claim |
|---|---|---|---|---|
| New South Wales | $655 | $113,641 | $2,841 | $22,728 |
| Victoria | $641 | $111,094 | $2,777 | $22,216 |
| Queensland | $549 | $95,171 | $2,379 | $19,032 |
| Western Australia | $380 | $65,852 | $1,646 | $13,168 |
| South Australia | $453 | $78,534 | $1,963 | $15,704 |
| Tasmania | $591 | $102,520 | $2,563 | $20,504 |
| Australian Capital Territory | $685 | $118,844 | $2,971 | $23,768 |
| Northern Territory | $774 | $134,175 | $3,354 | $26,832 |
Indicative. "Left to claim" is the deduction a year times the 8 income years left; the first and last are usually part years.
The cost per m² around 1994
From 1993 to 1994 the standard house's rate per m² rose 3%, from $565 to $582: the 24th steepest of the 40 year-on-year changes since 1985. In 1995 it rose 2% again, to $593. At 2025's rates it costs $347,938 to build, 3.4 times its 1994 cost of $100,908, and the deduction is worked from the 1994 figure.
Building in 1994, 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 1994 is the year to 30 June 1994.
The rate per m²
Our national series puts new houses in the year to 30 June 1994 at $508 per m² of floor area, 5% up on 1993's $484 and 70% up over the 9 years from 1985's $298, where the series starts.
The average new house
We put the average new house of 1994 at about 195 m² of floor area, read between the ABS figures for 1988 (181 m²) and 1996 (199.6 m²): at 1994's $508 per m², it cost about $99,000 to build.
How the figure was reached
How 1994'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).
1994 in Division 43's history
- Counting the calendar year each began in as its first, 1994 is the 10th year of capital works for homes (from 18 July 1985), the 8th year of the rate of 2.5% over 40 years (from 16 September 1987) and the 3rd year of structural improvements' claims (from 27 February 1992).
- 1994 came 23 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 33rd of its 40 income years at 2.5%. 8 income years, this one counted, carry 20% of its construction cost; the 80% of the 32 years before is spent, whoever owned it then. The first half of its years ended with 2013–14.
A kitchen replaced ten years on, in 2004, is new capital works with 40 years of its own, claimed until 2044: 10 years past 1994's own last income year, 2033–34. Every renovation since 1994 is the same, whatever the house's own date; its invoices and photos date it.
Renovating a rental built in 1994: 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 1994
In 1994 the builder's plant was about 7.4% of a standard house's cost, listed apart from the building; plant prices stood at 69% 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 48% of its June quarter 2020 level in the June quarter 1994. Fitted in 1994, with each life counted from 30 June 1994 as the building's years are, all 6 below have passed their effective lives, the last in 2005–06; a replacement bought new for a let property starts its own.
| Item | Installed new, 1994 prices | Effective life | Life ends, income year |
|---|---|---|---|
| Oven | $1,097 | 12 years | 2005–06 |
| Cooktop | $432 | 12 years | 2005–06 |
| Dishwasher | $732 | 8 years | 2001–02 |
| Electric hot water system | $994 | 12 years | 2005–06 |
| Carpet | $2,606 | 8 years | 2001–02 |
| Blinds | $994 | 10 years | 2003–04 |
Common questions
How much depreciation can I claim on a house built in 1994?
On a 1994 building, 2.5% of what it cost to construct, each year until 2033–34. For a standard 200 m² brick veneer house that is about $2,841 a year in New South Wales, $2,777 in Victoria and $2,379 in Queensland, with 8 income years left. Plant new to you adds to that, as does any renovation since 1994.
I bought a 1994 property second-hand. Does the deduction start again?
No: a 1994 building's 40 years run from its completion, not from your purchase, so a buyer claims the 8 income years left, 2026–27 to 2033–34, on the original construction cost rather than the price paid. Fitted new in 1994, every one of the 181 kinds of plant our catalogue prices has passed its effective life, the last ending in 2023–24. Section 40-27 reaches plant acquired from 7.30 pm on 9 May 2017, when a 1994 house was 23 years old or so: bought from an earlier owner since then, the plant that came with a 1994 house is generally not deductible (the 2017 rules set out who it reaches and the exceptions).
What was the rate for 1994?
2.5% a year over 40 years, for construction begun after 15 September 1987: counting from 30 June 1994, the 1994–95 to 2033–34 income years. Construction begun on any day of 1994 qualifies, the window having opened on 16 September 1987, and 32 of its 40 income years have passed.
What did it cost to build a house in 1994?
In the year to 30 June 1994, our national series puts new houses at $508 per m² of floor area, 70% up over the 9 years from 1985's $298, and the average new house, about 195 m², cost about $99,000 to build. At 1994's rates, our standard 200 m² single-storey brick veneer house, less the plant listed separately, cost about $100,908 at the national rate, against $97,603 in 1993 and $103,055 in 1995. In 1994 it was cheapest in Western Australia, at $65,852, and dearest in the Northern Territory, at $134,175. Where the 1994 build's own cost is not documented, a schedule estimates it at 1994's rates, about $100,908 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.