Capitalised labour costs – when are they deductible? ATO’s Draft Ruling TR 2019/D6

Catherine Dean & Louise Lovering discuss the ATO’s latest view on the deductibility of capitalised labour costs.

The Australian Taxation Office has released its latest view on the deductibility of capitalised labour costs.  Their views are contained in Taxation Ruling 2019/D6 Income tax: application of paragraph 8-1(2)(a) of the Income Tax Assessment Act 1997 to labour costs related to the construction or creation of capital assets (TR 2019/D6).The draft itself is 23 pages long, and contains five examples. Although it is geared to tangible assets, it also applies to intangibles. This draft ruling c...

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Authors: Catherine Dean, Louise Lovering

Published Date: 26 November 2019