Depreciation: Rental Property (Plant or Articles)

Whether particular items in a rental property are 'plant ' for the purposes of depreciation under section 42-15 ( Income Tax Assessment Act 1997 (ITAA 19))?

No. None of the items (listed below) are 'plant' for the purposes of section 42-15 (ITAA 1997).

The taxpayer claims depreciation on certain items on the basis that the items are 'plant' for depreciation purposes (section 42-15 ITAA 1997). The items at issue are; • Mirrored sliding doors (which form part of a built in wardrobe); • Vanity unit (which holds a basin and is attached to a wall); • Removable kitchen cupboard doors; • Tiling in apartment; • Tap ware; • Towel rails, soap holder, toilet roll holders and robe hooks; • Facade (common area); Flyscreens attached to all opening windows; • Flyscreen door for balcony sliding door; • Frameless toughened glass screen on balcony separating apartments • Tiling (common area); and • Mirrors/Shower screens (common area).

None of the items are 'plant ' for the purposes of section 42-15 (ITAA 1997), however, all the items form part of the 'fabric of the building', as they are an integral part of the structure of the building (see Case 11/97 97 ATC 173; Case 11655 (1997) 35 ATR 1022; Imperial Chemical Industries of Australia and New Zealand Ltd v FC of T (1970) 120 CLR 396; Case Y52 91 ATC 460; Case 7380 (1991) 22 ATR 3446; Case V144 88 ATC 906; Case 4609 (1988) 19 ATR 3880; Wangaratta Woollen Mills Ltd v FC of T 69 ATC 4095; (1969) 119 CLR 1);

On this basis, the items are not depreciable under section 42-15 (ITAA 1997).