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Last updated 31 May 2020

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Rental income

Rental income is the full amount of rent and rental associated payments you earn when you rent out your property (including renting out a room). If payment is made in goods or services, you will need to work out the monetary value of these. Your gross rental income amount includes:

  • rental income – rent paid to you
  • rental-related income – such as:
    • any bond money you
      • 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 claimed in 2019–20 or claimed in an earlier year
    • fees retained from cancelled booking.

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Rental expenses

You can claim most expenses relating to your rental property but only for the period your property was rented or genuinely available for rent, for example, advertised for rent without limiting its exposure to potential clients.

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 and water charges.

You can claim 100% of fees or commissions charged by a sharing economy facilitator or administrator.

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Types of rental expenses

There are three categories of rental expenses:

Other tax considerations