Income you must declare
You must include in your tax return the full amount of rent and any other rental-related income you receive (or become entitled to) when you rent out your property – whether paid to you or your agent.
Rental-related income includes:
- rental bond money you become entitled to retain – such as when a tenant defaults on the rent, or damage to your rental property requires repairs or maintenance
- insurance payouts in some circumstances – such as where you receive an insurance payment to compensate for damage to your property or for lost rent
- letting and booking fees you receive
- associated payments you receive, or become entitled to, as part of the normal, repetitive and recurrent activities through which you intend to generate profit from the use of your rental property (if these payments are in the form of goods and services you'll need to work out their monetary value)
- reimbursement or recoupment for deductible expenditure – for example:
- if you receive an amount from a tenant to cover the cost of repairing damage to your rental property and you can claim a deduction for the cost of the repairs, you need to include the whole amount in your income
- if you receive a government rebate for the purchase of a depreciating asset, such as a solar hot-water system, you may need to include an amount in your income (see Taxation Determination TD 2006/31External Link)
- any excessive deductions for capital allowances involving your rental property where a limited recourse debt is terminated without you paying it in full.
You must include in your tax return the full amount of rent and any other rental-related income you receive or become entitled to when you rent out your property – whether paid to you or your agent.
Goods and services tax
GST doesn't apply to rent on residential premises. If you rent out residential accommodation, you're not liable for GST on the rent you charge.
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