You need to know
Before you complete this section, see Rental properties 2016.
Do not show at this item:
- a deduction for the decline in value of a low-value pool; show this at Low-value pool deduction in the Deductions, or tax losses from earlier income years section
- foreign source rental income, that is, rental income from properties outside Australia; show this at Other foreign income in the Foreign income, assets and entities section
- expenses incurred in earning rental income from properties located outside Australia; show this at Other foreign income in the Foreign income, assets and entities section.
If you can't see Low-value pool deduction or Other foreign income, go to Personalise return and select the following:
For Low-value pool deduction
- 'You had deductions you want to claim, or tax losses from earlier income years'
- 'Other deductions, or losses from earlier income years'
For Other foreign income
- 'You had foreign income'
- 'Other foreign income'.
This is the full amount of money you earn when you rent out your property. You must include any bond money retained in place of rent or kept because of damage to the property requiring repairs. An insurance payout for lost rent or a reimbursement of any rental expenses you claim in 2015–16 or claimed in an earlier year must also be included as income.
You can claim expenses relating to your rental property but only for the period your property was rented or available for rent, for example, advertised for rent.
Expenses could include advertising for tenants, bank charges, body corporate fees, borrowing expenses, council rates, decline in value of depreciating assets, gardening and lawn mowing, insurance, land tax, pest control, property agent fees or commissions, repairs and maintenance, stationery, phone, water charges, and travel undertaken to inspect the property or to collect the rent.
If part of your property is used to earn rent, you can claim expenses relating to only that part of the property. You will need to work out a reasonable basis to apportion the claim.
Depreciation and capital allowances tool
You can use the Depreciation and capital allowances tool to work out any capital allowances or capital works expenses. The tool can be accessed when you add your rental property details.
If you used depreciation worksheets in e-tax 2015, you can upload your e-tax 2015 tax file to this tool to roll over your depreciation details. You must have access to your e-tax 2015 tax file (we cannot send you a copy of it).
For more information, see Rent.
Completing this section
You will need details of:
- all rental income earned
- interest charged on money you borrowed for the rental property
- other expenses relating to your rental property
- any expenditure on capital works to your rental property.
- For each rental property you own or have an interest in, select Add and enter information into the corresponding fields.
If your Ownership percentage is less than 100%, myTax will calculate your share of rental income and expenses, using your ownership percentage, and display the amount at the corresponding Your share field.
Note: If you used the Depreciation and capital allowances tool, fields containing information from the tool cannot be directly adjusted in myTax. To make any adjustments to this information, or to add new assets to the tool, select the 'Work it out' link.
- Select Save.
- Select Save and continue.