Rental properties 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.
Publications and services
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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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 supplement (NAT 2677) contains further information on foreign source income. If you are unsure of your obligations, contact your recognised tax adviser or us.
Last modified: 29 Jun 2010QC 22885
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.