Who can claim
This deduction is available to individuals and companies.
- The expense is incurred in carrying on an existing income-producing business.
- Any private, capital or non-income-producing component is reasonably apportioned or excluded.
- The work remedies wear, damage or deterioration in an existing business asset.
- Replacing a subsidiary part can be a repair where it does not replace or reconstruct the relevant entirety and does not materially improve it.
What you cannot claim
- Do not include private drawings or personal expenses.
- Do not treat a capital asset, improvement or acquisition cost as an ordinary operating expense.
- Replacement or reconstruction of the relevant entirety is capital.
- Initial repairs, improvements and new assets are capital in nature and need different treatment.
- Enter vehicle repairs once: do not also include them in a business-car actual-cost or logbook amount.
How the amount is worked out
Claim the deductible business portion of a genuine repair. Separate any improvement, initial repair or relevant-entirety replacement for capital treatment, and do not duplicate vehicle repairs included in a business-car calculation.
Records the ATO expects
- Itemised repair invoice
- Evidence identifying the asset and subsidiary part repaired
- Before-and-after description
- Business-use evidence
Where this rule comes from
Primary source: ATO TR 97/23 repairs (TR 97/23). Reviewed 30 July 2026. Covers the 2025-26 and 2026-27 income years.