Rental income



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Rental and other rental-related income is the full amount of rent and associated payments that you receive, or become entitled to, when you rent out your property, whether it is paid to you or your agent. You must include your share of the full amount of rent you earn in your tax return.

Associated payments may be in the form of goods and services. You will need to work out the monetary value of these.

Example 1: Rental income received in the form of property

Steve owns a residential property. Steve's friend Maria lived in the residential property for a period of time. In exchange for being allowed to live in the residential property Maria provided Steve with an item of property. The value of the item was equivalent to what would have been a reasonable commercial rent for the property for the period she lived there. The item of property was able to be converted into cash.

Where any consideration is paid or given otherwise than in cash, the money value of that consideration is deemed to have been paid or given. The provision of an item of property instead of cash falls within the concept of barter. The barter receipt is assessable to the same extent as a cash payment. As the item was convertible to cash, Steve shows the value of the item of property as assessable income.

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Last modified: 24 Nov 2015QC 44158