Introduction
Painting a commercial building often raises a complex question: is painting a commercial building considered a capital improvement, or is it treated as routine maintenance? For strata committees, building managers, and consultants, the answer impacts far more than tax treatment. It affects budgets, long-term planning, depreciation strategies, and decisions on when and how to undertake facade works.
The truth is that painting can sit on either side of the line — capital improvement vs repair painting — depending on the intent, scope, and outcome of the work. And because these decisions come with financial, compliance, and risk implications, owners want clarity and trustworthy guidance rather than guesswork.
At CPR Facade Upgrade Specialists, we’ve spent decades guiding strata owners and commercial asset managers through this exact question, using our combination of Scaffold-Free™ access systems, AIMMS™ digital recording, and multi-decade preservation strategies. This article breaks down the financial, technical, and regulatory considerations behind is painting a commercial building a capital improvement, providing peace of mind for committees and precision for professionals.
When Is Painting a Capital Improvement? Understanding the Criteria
Painting as a Standalone Expense
In many cases, commercial property painting expenses are treated as routine maintenance — a cost intended to preserve the building’s existing condition. In these scenarios, the expenditure may qualify as a painting commercial building tax deduction.
Painting as Part of a Larger Facade Upgrade
However, painting becomes a capital improvement when it:
- Extends the building’s useful life
- Enhances value through significant renovation
- Is part of a broader upgrade involving rectification works such as concrete repair, corrosion management, sealing, or membrane replacement
- Forms part of tenant improvements and painting for long-term enhancement
In these cases, painting can be capitalised under capitalizing painting costs on commercial building rules and depreciated over time.
IRS Rules and Local Standards
Even though Australia uses a different tax system, many owners search for IRS rules on capital improvements, so the same logic applies: painting is a capital improvement when it materially improves, restores, or adapts the building.
Maintenance vs Capital Improvement Examples
Maintenance
- Repainting small areas to fix wear-and-tear
- Touch-ups between tenancy changes
- Patch painting following minor repairs
Capital Improvements
- Full facade painting combined with structural remediation
- Painting following comprehensive concrete cancer repairs
- Painting as part of a rebranding, recladding, or building repositioning strategy
How Strata Committees Should Interpret Capital vs Maintenance
Trusted Neighbour Tone
For strata committees, this question is less about taxes and more about avoiding financial surprises. Many owners fear unexpected levies or inflated quotes — and understandably so. Big painting jobs can be expensive, and poor advice leads to cost blowouts.
We reassure owners with complete transparency. Our AIMMS™ recording gives you a permanent digital record of exactly what’s being repaired, painted, and preserved — which means for you no hidden costs and no confusion.
Whether the painting is classified as maintenance or a capital improvement, the goal is the same: make sure the building gets a long-lasting, value-adding result without stress.
How Building Managers and Consultants Should Interpret the Question
Confident Innovator Tone
Painting alone rarely meets capitalisation requirements — unless paired with significant remedial scope. With CPR’s Scaffold-Free™ systems (MARS™, PEARS®, SkyPod®), managers and consultants gain a fully quantifiable approach to determining whether works fall under maintenance or capital improvement.
Using AIMMS™ data, we generate:
- A precise defect list
- A measurable improvement scope
- Evidence-based allocation between repair vs improvement
- Traceable work logs for tax and depreciation records
This eliminates ambiguity, strengthens compliance, and minimises risk.
Why Proper Access Methods Matter in Capital Projects
Capital improvements require:
- Traceability
- Precision
- Non-invasive access
- Minimal operational disruption
- High safety compliance
Traditional scaffolding fails in these areas — costly, slow, intrusive, and lacking transparency.
CPR’s Scaffold-Free™ System Benefits
- SkyPod® Workstations encapsulate grinding and painting areas, which means for you clean, safe and compliant works without affecting residents or businesses.
- MARS™ allows drop-by-drop access, which means for you no need for building entry, improving privacy.
- PEARS® Power Elevator ensures efficient vertical movement, which means for you faster, quieter, more controlled project timelines.
- AIMMS™ records every patch, every repair, and every coat of paint, which means irrefutable evidence of capital vs maintenance classification.
Depreciation of Commercial Building Painting
If painting qualifies as a capital improvement, it may be depreciated. Whether through straight-line or building-specific schedules, depreciation of commercial building painting allows owners to spread costs over the improvement’s lifespan.
Painting that forms part of:
- concrete cancer remediation
- membrane upgrades
- corrosion control programs
…is more likely to meet capital improvement criteria due to its restorative impact.
What About Tenants? Leasehold Improvements
Tenants often ask whether leasehold improvements painting qualifies as capital expenditure. The answer mirrors building-owner rules:
- Routine touch-ups = deduction
- Significant reconditioning = capital improvement
However, tenants typically depreciate costs over the lease term or improvement life.
How CPR Helps Owners Make the Correct Classification
For Strata Committees
We deliver clarity:
- Clear breakdown of maintenance vs improvement works
- Affordable solutions that reduce the need for special levies
- Scaffold-Free™ access saving up to 20% on total facade project costs
- AIMMS™ records proving value and accuracy
For Building Managers & Consultants
We provide:
- Technical data
- Detailed scopes
- 3D modelling
- Before/after photographic evidence
- End-to-End Project Care reporting
Capital Improvement Case Study (Summary)
A 17-storey commercial building in Sydney required full facade remediation. Traditional quotes with scaffolding came in at $1.8 million.
CPR’s Scaffold-Free™ methodology:
- Eliminated scaffolding costs
- Reduced program from 6 months to 3
- Delivered complete paint systems and concrete repair
- AIMMS™ produced a digital record, supporting capitalisation
Final cost: $1.42 million, yielding significant cost savings.
When Painting Should Not Be Capitalised
- Short-term fixes just prior to sale
- Cosmetic-only upgrades without remedial value
- Touch-ups or basic upkeep
- Works expected annually or bi-annually
Conclusion: So, Is Painting a Commercial Building Considered a Capital Improvement?
Sometimes yes — and sometimes no. It depends on scope, intent, and whether the work improves or simply maintains the building.
But with CPR, owners no longer have to guess. AIMMS™ gives you an unbiased, permanent digital record. Our Scaffold-Free™ systems deliver long-lasting, affordable results. And our consultancy-led approach ensures your project classification is accurate, transparent, and defensible.
For peace of mind and technical certainty, we recommend starting with a consultation.
To understand whether your project qualifies as a capital improvement — and to see AIMMS™ in action — book a consultation or review the full facade painting and protective coatings service here:
Explore High-Rise Painting & Coatings → Paint & Protective Coatings for High-Rise Buildings
