Gearing benefits for Non-Residents
INCOME TAX DEDUCTIONS - INCOME PRODUCING PROPERTY

Deductible at the time the expenses are incurred:

Partly deductible each year:
· borrowing costs
· depreciable assets
· certain building costs 
INTEREST
Where interest is to be paid on monies borrowed from an associated non-resident, limitations are placed on the amount of interest that can be claimed as a tax deduction. Otherwise the interest paid on monies borrowed to acquire an investment property can be claimed fully.
DEPRECIATION
A deduction is available for depreciation of plant, furniture and fittings, etc that may be contained within, or form part of, a property. Buildings such as high-rises, flats and units include articles of common property that are also depreciable. These include lifts, fire sprinklers and extinguishers and pools. A complete list should be available from the body corporate of each building. 
BUILDING COST DEDUCTIONS
A deduction is allowable on the construction costs of certain income producing buildings. The rate of the deduction will depend on the date construction of the building began, and whether it was for residential or non-residential use. The following table shows the rates at which these construction costs can be written off for new buildings:

Capital expenditure on extension, alterations or improvements is eligible on the same basis.