Tax depreciation on the structural cost of a residential building (typically 2.5% per year over 40 years). Reduces taxable income during the hold but also reduces the CGT cost base at sale.
Division 43 ITAA 1997. Available for residential buildings whose construction commenced after 17 July 1985. Calculated on the original historical construction cost, not the current purchase price. Cost base reduction at sale is set out in s 110-25.