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Session details

Session 14.1: Outlays on refurbishments – A repair or an improvement?

This session explores the repair/improvement dichotomy raised by outlays incurred to refurbish buildings. In 2021 fires, floods, earthquakes, cyclones and third party mandates compelled significant outlays on building refurbishment. Governments, LGAs, Fire Authorities, insurance companies and Owners Corporations can all mandate refurbishment outlays such as:

  • Installing a sprinkler system
  • removing and replacing flammable cladding
  • replacing a balcony

The task of characterising the refurbishment outlays (and potentially insurance recoupments) is complex and brings into focus many facets of tax law including balancing adjustments, CGT events, rollovers, and insurance proceeds.

Speaker: Melinda Peters, CTA, McCullough Robertson