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Last updated 26 May 2021

Rental properties 2021 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 tax return for the income year in which you spent the money
    • others must be claimed over a number of years (including decline in value of depreciating assets and capital works expenses).

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 business of letting rental properties.

When you own a rental property, you may also need to know about: