1988 to 1999
Depreciation on a property built in 1997
A residential building whose construction began in 1997 is deducted at 2.5% of its construction cost a year, for construction begun after 15 September 1987. Counting from 30 June 1997, its 40 years run from the 1997–98 income year to 2036–37, and from 2026–27 it has 11 income years left. Our national series puts new houses at $533 per m² of floor area in the year to 30 June 1997, 0.4% up on 1996's $531.
- Rate
- 2.5%
- Years left
- 11
- Last year
- 2036–37
What a house built in 1997 cost, state by state
A standard 200 m² single-storey brick veneer house at 1997 rates, less the builder's plant (7% of its cost that year), listed separately; the deduction is 2.5% of it a year.
| State | Rate per m² in 1997 | Construction cost | Deduction a year | Left to claim |
|---|---|---|---|---|
| New South Wales | $683 | $119,024 | $2,976 | $32,736 |
| Victoria | $664 | $115,697 | $2,892 | $31,812 |
| Queensland | $558 | $97,210 | $2,430 | $26,730 |
| Western Australia | $394 | $68,613 | $1,715 | $18,865 |
| South Australia | $432 | $75,281 | $1,882 | $20,702 |
| Tasmania | $615 | $107,089 | $2,677 | $29,447 |
| Australian Capital Territory | $640 | $111,516 | $2,788 | $30,668 |
| Northern Territory | $874 | $152,299 | $3,807 | $41,877 |
Indicative. "Left to claim" is the deduction a year times the 11 income years left; the first and last are usually part years.
The cost per m² around 1997
From 1996 to 1997 the standard house's rate per m² fell 0.3%, from $599 to $597: one of 1 falls among the 40 year-on-year changes since 1985. In 1998 it rose 1%, against the fall into 1997, to $604. At 2025's rates it costs $347,938 to build, 3.3 times its 1997 cost of $104,002, and the deduction is worked from the 1997 figure.
Building in 1997, 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 1997 is the year to 30 June 1997.
The rate per m²
Our national series puts new houses in the year to 30 June 1997 at $533 per m² of floor area, 0.4% up on 1996's $531 and 60% up over the ten years from 1987's $334.
The average new house
We put the average new house of 1997 at about 207 m² of floor area, read between the ABS figures for 1996 (199.6 m²) and 1998 (214 m²): at 1997's $533 per m², it cost about $110,000 to build.
How the figure was reached
How 1997's figure was arrived at: between the 1996 and 1998 figures, following the ABS input to house construction index. It rests on 1 source and is graded B, from A (a published figure) to D (an assumed rate of growth).
1997 in Division 43's history
- Counting the calendar year each began in as its first, 1997 is the 13th year of capital works for homes (from 18 July 1985), the 11th year of the rate of 2.5% over 40 years (from 16 September 1987) and the 6th year of structural improvements' claims (from 27 February 1992).
- 1997 came 20 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 30th of its 40 income years at 2.5%. 11 income years, this one counted, carry 27.5% of its construction cost; the 72.5% of the 29 years before is spent, whoever owned it then. The first half of its years ended with 2016–17.
A kitchen replaced ten years on, in 2007, is new capital works with 40 years of its own, claimed until 2047: 10 years past 1997's own last income year, 2036–37. Every renovation since 1997 is the same, whatever the house's own date; its invoices and photos date it.
Renovating a rental built in 1997: 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 1997
In 1997 the builder's plant was about 7% of a standard house's cost, listed apart from the building; plant prices stood at 72% of 2020's by our plant index, and the ABS house construction price index for Australia stood at 49% of its June quarter 2020 level in the June quarter 1997. Fitted in 1997, with each life counted from 30 June 1997 as the building's years are, all 6 below have passed their effective lives, the last in 2008–09; a replacement bought new for a let property starts its own.
| Item | Installed new, 1997 prices | Effective life | Life ends, income year |
|---|---|---|---|
| Oven | $1,140 | 12 years | 2008–09 |
| Cooktop | $449 | 12 years | 2008–09 |
| Dishwasher | $760 | 8 years | 2004–05 |
| Electric hot water system | $1,033 | 12 years | 2008–09 |
| Carpet | $2,708 | 8 years | 2004–05 |
| Blinds | $1,033 | 10 years | 2006–07 |
Common questions
How much depreciation can I claim on a house built in 1997?
On a 1997 building, 2.5% of what it cost to construct, each year until 2036–37. For a standard 200 m² brick veneer house that is about $2,976 a year in New South Wales, $2,892 in Victoria and $2,430 in Queensland, with 11 income years left. Plant new to you adds to that, as does any renovation since 1997.
I bought a 1997 property second-hand. Does the deduction start again?
No: a 1997 building's 40 years run from its completion, not from your purchase, so a buyer claims the 11 income years left, 2026–27 to 2036–37, on the original construction cost rather than the price paid. Fitted new in 1997, 179 of the 181 kinds of plant our catalogue prices have passed their effective lives, and the other 2 end from 2026–27 to 2026–27. Section 40-27 reaches plant acquired from 7.30 pm on 9 May 2017, when a 1997 house was 20 years old or so: bought from an earlier owner since then, the plant that came with a 1997 house is generally not deductible (the 2017 rules set out who it reaches and the exceptions).
What was the rate for 1997?
2.5% a year over 40 years, for construction begun after 15 September 1987: counting from 30 June 1997, the 1997–98 to 2036–37 income years. Construction begun on any day of 1997 qualifies, the window having opened on 16 September 1987, and 29 of its 40 income years have passed.
What did it cost to build a house in 1997?
In the year to 30 June 1997, our national series puts new houses at $533 per m² of floor area, 60% up over the ten years from 1987's $334, and the average new house, about 207 m², cost about $110,000 to build. At 1997's rates, our standard 200 m² single-storey brick veneer house, less the plant listed separately, cost about $104,002 at the national rate, against $104,147 in 1996 and $105,580 in 1998. In 1997 it was cheapest in Western Australia, at $68,613, and dearest in the Northern Territory, at $152,299. Where the 1997 build's own cost is not documented, a schedule estimates it at 1997's rates, about $104,002 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.