2000 to 2009
Depreciation on a property built in 2008
A residential building whose construction began in 2008 is deducted at 2.5% of its construction cost a year, for construction begun after 15 September 1987. Counting from 30 June 2008, its 40 years run from the 2008–09 income year to 2047–48, and from 2026–27 it has 22 income years left. Our national series puts new houses at $987 per m² of floor area in the year to 30 June 2008, 6% up on 2007's $930.
- Rate
- 2.5%
- Years left
- 22
- Last year
- 2047–48
What a house built in 2008 cost, state by state
A standard 200 m² single-storey brick veneer house at 2008 rates, less the builder's plant (3.9% of its cost that year), listed separately; the deduction is 2.5% of it a year.
| State | Rate per m² in 2008 | Construction cost | Deduction a year | Left to claim |
|---|---|---|---|---|
| New South Wales | $1,062 | $191,426 | $4,786 | $105,292 |
| Victoria | $1,065 | $191,887 | $4,797 | $105,534 |
| Queensland | $995 | $179,360 | $4,484 | $98,648 |
| Western Australia | $846 | $152,415 | $3,810 | $83,820 |
| South Australia | $774 | $139,433 | $3,486 | $76,692 |
| Tasmania | $1,095 | $197,256 | $4,931 | $108,482 |
| Australian Capital Territory | $1,099 | $197,933 | $4,948 | $108,856 |
| Northern Territory | $1,643 | $296,007 | $7,400 | $162,800 |
Indicative. "Left to claim" is the deduction a year times the 22 income years left; the first and last are usually part years.
The cost per m² around 2008
From 2007 to 2008 the standard house's rate per m² rose 6%, from $960 to $1,014: the 10th steepest of the 40 year-on-year changes since 1985. In 2009 it rose 2% again, to $1,038. At 2025's rates it costs $347,938 to build, 1.9 times its 2008 cost of $182,782, and the deduction is worked from the 2008 figure.
Building in 2008, 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 2008 is the year to 30 June 2008.
The rate per m²
Our national series puts new houses in the year to 30 June 2008 at $987 per m² of floor area, 6% up on 2007's $930 and 84% up over the ten years from 1998's $537.
The average new house
We put the average new house of 2008 at 239.4 m² of floor area, the ABS's 2008 figure: at 2008's $987 per m², it cost about $236,000 to build.
How the figure was reached
How 2008'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).
2008 in Division 43's history
- Counting the calendar year each began in as its first, 2008 is the 24th year of capital works for homes (from 18 July 1985), the 22nd year of the rate of 2.5% over 40 years (from 16 September 1987) and the 17th year of structural improvements' claims (from 27 February 1992).
- 2008 came 9 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 19th of its 40 income years at 2.5%. 22 income years, this one counted, carry 55% of its construction cost; the 45% of the 18 years before is spent, whoever owned it then. The first half of its years ends with 2027–28.
A kitchen replaced ten years on, in 2018, is new capital works with 40 years of its own, claimed until 2058: 10 years past 2008's own last income year, 2047–48. Every renovation since 2008 is the same, whatever the house's own date; its invoices and photos date it.
Renovating a rental built in 2008: the old plant and works Houses of 2000 to 2009 beside the other years Using a previous owner's scheduleA standard house's plant, fitted new in 2008
In 2008 the builder's plant was about 3.9% of a standard house's cost, listed apart from the building; plant prices stood at 86% of 2020's by our plant index, and the ABS house construction price index for Australia stood at 76% of its June quarter 2020 level in the June quarter 2008. Fitted in 2008, with each life counted from 30 June 2008 as the building's years are, all 6 below have passed their effective lives, the last in 2019–20; a replacement bought new for a let property starts its own.
| Item | Installed new, 2008 prices | Effective life | Life ends, income year |
|---|---|---|---|
| Oven | $1,370 | 12 years | 2019–20 |
| Cooktop | $539 | 12 years | 2019–20 |
| Dishwasher | $913 | 8 years | 2015–16 |
| Electric hot water system | $1,241 | 12 years | 2019–20 |
| Carpet | $3,253 | 8 years | 2015–16 |
| Blinds | $1,241 | 10 years | 2017–18 |
Common questions
How much depreciation can I claim on a house built in 2008?
On a 2008 building, 2.5% of what it cost to construct, each year until 2047–48. For a standard 200 m² brick veneer house that is about $4,786 a year in New South Wales, $4,797 in Victoria and $4,484 in Queensland, with 22 income years left. Plant new to you adds to that, as does any renovation since 2008.
I bought a 2008 property second-hand. Does the deduction start again?
No: a 2008 building's 40 years run from its completion, not from your purchase, so a buyer claims the 22 income years left, 2026–27 to 2047–48, on the original construction cost rather than the price paid. Fitted new in 2008, 167 of the 181 kinds of plant our catalogue prices have passed their effective lives, and the other 14 end from 2027–28 to 2037–38. Section 40-27 reaches plant acquired from 7.30 pm on 9 May 2017, when a 2008 house was 9 years old or so: bought from an earlier owner since then, the plant that came with a 2008 house is generally not deductible (the 2017 rules set out who it reaches and the exceptions).
What was the rate for 2008?
2.5% a year over 40 years, for construction begun after 15 September 1987: counting from 30 June 2008, the 2008–09 to 2047–48 income years. Construction begun on any day of 2008 qualifies, the window having opened on 16 September 1987, and 18 of its 40 income years have passed.
What did it cost to build a house in 2008?
In the year to 30 June 2008, our national series puts new houses at $987 per m² of floor area, 84% up over the ten years from 1998's $537, and the average new house, about 239 m², cost about $236,000 to build. At 2008's rates, our standard 200 m² single-storey brick veneer house, less the plant listed separately, cost about $182,782 at the national rate, against $172,540 in 2007 and $187,675 in 2009. In 2008 it was cheapest in South Australia, at $139,433, and dearest in the Northern Territory, at $296,007. Where the 2008 build's own cost is not documented, a schedule estimates it at 2008's rates, about $182,782 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.