Nova Design Group

taxation purposes and can have long-term ramifications should you get it wrong,” explained Madeleine Hicks of LJ Hooker Everton Park.

If the work you are undertaking involves fixing up damage caused by wear and tear, the expense is likely to be a repair and is tax deductible.

However, when you are replacing old materials with new and enhancing the property beyond its original state, the work is more likely to be considered an improvement and will therefore be added to the cost of your property, representing a depreciable asset.

It is advisable to seek professional accounting advice when undertaking such projects particularly when there are significant expenses to the project. These can often trigger the eye of the ATO.

“Using an experienced building designer can save you thousands of dollars”, says Michael King of Nova Design Group Pty Ltd.