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  • Rental income you must declare

    Rent and other rental-related income is the full amount of rent and associated payments you receive or become entitled to when you rent out your property. This includes payments in the form of goods and services. You will need to work out the monetary value of these.

    You must include in your tax return the full amount of rent and any other rental-related income you receive – 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
       
    • any excessive deductions for capital allowances involving your rental property where a limited recourse debt is terminated without you paying it in full.
    • lump sum payment, where the nature of the payment is a substitute for or prepayment of rental income (and thus ordinary income).

    Watch:

    Media: [video title]
    How to include rental income and expenses in myTax http://tv.ato.gov.au/ato-tv/media?v=bd1bdiubtjsfhw External Link (Duration: 1:59)

    Duration 1m:33s.

    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.

    See also:

    • Rental properties 2019
    • Limited recourse debt arrangements
    • TD 2006/31: Income tax: is a government rebate received by a rental property owner an assessable recoupment under subsection 20-20(3) of the Income Tax Assessment Act 1997, where the owner is not carrying on a property rental business and receives the rebate for the purchase of a depreciating asset (for example an energy saving appliance) for use in the rental property
    Last modified: 26 Jun 2019QC 23632