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Rental income

Last updated 3 December 2006

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 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.

Rental related income

You must include rental bond money as income if you become entitled to retain it - for instance, because a tenant defaulted on the rent, or because of damage to your rental property requiring repairs or maintenance.

If you derived an insurance payout there may be situations where the payout needs to be included as income - for example, if you received an insurance payment to compensate you for lost rent.

If you derive a letting or booking fee you must include this as part of your rental income.

Associated payments include all amounts you receive, or become entitled to, as part of the normal, and repetitive and recurrent activities through which you intend to generate profit from the use of your rental property.

If, in relation to your rental activity, you receive a reimbursement or recoupment for deductible expenditure you have incurred, you must include that amount as income - for example, if a tenant pays you an amount to cover the cost of repairing damage to some part of your rental property and you can claim a deduction for the repairs.

You can claim a deduction for certain rental expenses you incur for the period your property is rented out or available for rent. For more information, read the section Rental expenses.

You must include as rental income any assessable amounts relating to hire purchase and limited recourse debt arrangements involving your rental property. For more information about the latter, read the section Limited recourse debt arrangements and see the publication Guide to depreciating assets.

QC27520