Patch repairs = deductible. Straight forward.
TR 97/23
http://law.ato.gov.au/atolaw/view.htm?docid=TXR/TR9723/nat/ato/00001 addresses the issue of what is deductible, non-deductible, capital or building works. And then it leaves you confused.
On the face of it replacing the entirety of a steel roof might be capital expenditure and non-deductible. Para 18 is a guide and it suggests you seek Private Ruling to be certain. Some arguments to support your view and the key issue in the TR could include:
- The roof is only part of the building hence "entirety" is not satisfied. See para 37-42
- Can there be a part repair and part is replacement ? At same time ?? Yes see Para 57. But needs to be clearly ascertained. This suggests the quote can be influenced so that bulk of cost is repair and trivial portion = replacement so that total costs is he cheaper quote to replace it all
- A full replacement is cheaper than part since sheets overlap. So it might be cheaper to replace whole than repair even 50%.
- Photo's
- Identical or substantially alike materials. For example corro sheets = colorbond panels or sheets. Glass panels / skylight = No.
- Any partial replacement of timber
- Renewal of all fittings (ie screws/ clips etc) due to rust would otherwise be essential repairs. My offices needed a portion of 30% sheets replaced plus all sheets refixed using new screws. That = deductible.
- Estimates of actual sheets damaged requiring repair as % of total
- Quotes...If a quote to repair 30% = full replacement demonstrate this.
Also wording of final invoice AND quote might support or harm arguements but the actual work performed should guide you. If it says instal and replace roofing sheets thats not as effective as "repairs to roof sheeting to address leakage etc". Dont fall for the old trick of final invoice saying one thing and quote another. And a invoice that says repair when you replaced a whole roof might be a fraud.
The issue of depreciation falls best on our qty survey experts. I rely on their view and its complex at times. My view is roofing = fixed part of the building and is eligible construction expediture eligible for capital allowance of 2.5% pa.