What sort of Tax Deductions can you Claim on a Swimming Pool?

Swimming pools are part of the common areas of larger unit developments. However, there are various reasons for not finding a swimming pool in residential properties. One of the common reasons is that the maintenance of these pools in a residential home is quite high. Compliance and other similar issues also arise with pool fences. And, you will rarely witness an investor installing a swimming pool for his tenant.

Given below are scenarios when you can seek tax refunds with a swimming pool:

1. Items Listed as Plant and Equipment in a Swimming Pool:

So if you are planning to purchase an investment property with a swimming pool, you can avail some tax deductions. However, you must understand that there is a breakup between the plant and equipment component and structural component. When buying an investment property containing a pool, there are a few items listed as plant and equipment within the legislation. These items include swimming pool chlorinators and filtration assets, heaters, and cleaners. The heaters will include electric heaters, gas heaters, or solar heaters. You can seek the help of experts to calculate the tax depreciation cost of a swimming pool.

2. Spa Pumps and Swimming Pool Covers:

The swimming pool also includes items like pool covers, spa pumps, and similar other items. The good news is that these items depreciate at a very fast pace in comparison to the pool itself. These items will depreciate at a rate of 10 percent to 28.6 percent under the diminishing value method. However, since 2017 and onwards, there have been some changes if you want to claim tax deductions on these plant items. You may either need to buy the property as brand new or add these assets to the rental property on your own. Professionals will make it easy for you to calculate the exact estimate tax returns on a swimming pool.

3. Division 43 Capital Improvement Category:

The great thing is that the maximum value of a swimming pool falls in division 43 capital improvement category. If you own a concrete swimming pool, it will include all the concrete, pool fencing, and tiling. It has emerged as the highest component of the total value. The positive thing is that you do not need to build the pool on your own or purchase it in brand new condition. And, the changes to plant equipment in 2017 do not have any influence on structural deductions. It is okay to claim tax deductions if it was constructed after the cut-off date for division 43 allowances.


There are various positive and negative considerations when you acquire a property with a pool. Items like fencing will come in division 43 with a depreciation rate of 5 percent. The effective life is 40 years. Items such as filters and chlorinators will come under plant and equipment. The depreciation rate is 20 percent with an effective life of 10 years. And, items like cleaning assets will fall in the category of plant and equipment. You can enjoy depreciation tax benefit on these items.


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