Rental properties 2011 will help you, as an owner of rental property in Australia, determine:

  • which rental income is assessable for tax purposes
  • which expenses are allowable deductions
  • which records you need to keep
  • what you need to know when you sell your rental property.

Many, but not all, of the expenses associated with rental properties will be deductible. This guide explains:

  • how to apportion your expenses if only part of them are tax deductible
  • what expenses are not deductible
  • when you can claim those expenses that are deductible
    • some you can claim in the year they occur
    • others must be claimed over a number of years (including decline in value of depreciating assets and capital works expenses).

When you own a rental property, you may also need to know about capital gains and goods and services taxes, negative gearing, pay as you go (PAYG) instalments and the effects of the general value shifting regime.

Tax and natural disasters



This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

End of attention

We have special arrangements for people affected by recent natural disasters such as Cyclone Yasi and the floods in Queensland and Victoria.

If your tax records were lost or destroyed, we can help you to reconstruct them, and make reasonable estimates where necessary.

Phone our emergency support team on 1800 806 218 and we can discuss the best way we can help you.

We can also:

  • fast track refunds
  • give you extra time to pay debts, without interest charges
  • give you more time to meet activity statement, income tax and other lodgment obligations, without penalties
  • help you if you are experiencing serious hardship.

Publications and services

To find out how to get a publication referred to in this guide and for information about our other services, see More information.

Is your rental property outside Australia?

If your property is located outside Australia, special rules apply to the deductibility of your rental property expenses. Question 20 in TaxPack 2011 supplement contains further information on foreign source income. If you are unsure of your obligations, contact your recognised tax adviser or us.


The examples given in this publication featuring Mr and Mrs Hitchman are based on the assumption that the Hitchmans own their rental properties as joint tenants who are not carrying on a rental property business.

    Last modified: 08 Sep 2011QC 28002