Tax deductions for asbestos testing, removal and disposal Fact Sheet

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Date created: Date modified: 26 Jan 2024

This fact sheet provides information for owners of commercial and rental properties on income tax deductions for certain asbestos activities.

Key facts:

In July 2020, the Australian Taxation Office (ATO) published the taxation ruling TR 2020/2 allowing income tax deductions for expenditure on ‘environmental protection activities’.

This means if you own a property that provides you with an income, for example commercial or rental properties, some asbestos activities may be claimed as a tax-deductible expense.

The activities are:

  • testing where asbestos is suspected (even if asbestos is not found)
  • engaging a licenced asbestos removalist to remove and dispose of asbestos (including fences and sheds)
  • replacing removed materials, only where this results in a minor degree of alteration and improvement.

Read the full fact sheet for more information.