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  • Rental related income



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

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

    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 fee you need to 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 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 assessable amounts relating to hire purchase and limited recourse debt arrangements in your rental income. For more information about limited recourse debt arrangements, read the section Limited recourse debt arrangements and see the publication Guide to depreciating assets.

    Last modified: 11 Dec 2019QC 16578