We are receiving a lot of queries about the deductibility of seismic upgrade costs to buildings. Sadly these will almost always be capital and no deductible, and no depreciable give the repeal of building depreciation.

There have been calls for the government to provide some tax relief for these costs given the number of people affected and, if you will excuse the pun, the magnitude of the costs. To date these calls have fallen on deaf ears. However, with an election next year there may be some hope. However, any law changes will not be retrospective, so it may pay to wait 12 months if you can before incurring the upgrade costs just in case.