You can no longer claim tax deductions for the cost of holding vacant land. These changes apply to costs incurred from 1 July 2019, even if you held the land before that date.
Land will be considered vacant if:
- it does not contain a substantial and permanent structure
- it contains a substantial and permanent structure and the structure is a residential premises which was constructed or substantially renovated while the entity held the land and the premises are either
- not yet lawfully able to be occupied
- lawfully able to be occupied but not yet rented or made available for rent.
For more information, see Deductions for vacant land
Tax and COVID-19
Your rental property income and deductions may have been affected by COVID-19. For more information, see COVID-19 frequently asked questions.
For general information about ATO measures and support during COVID-19, see COVID-19.
Tax and natural disasters
We have special arrangements for people affected by natural disasters such as a cyclone, flood or fire occurring during the financial year. For more information, see Dealing with disasters.
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. For more information on foreign source income, see Question 20 in the tax return instructions. If you are unsure of your obligations, contact your recognised tax adviser or us.