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Edited version of private advice
Authorisation Number: 1052446722678
Date of advice: 05 September 2025
Ruling
Subject: Rental - deductions - repair
Question
Are you entitled to claim the expense you incurred for work carried out on your rental property's roof as repair deductions under section 25-10 of the Income Tax Assessment Act 1997?
Answer
Yes.
Section 25-10 of the ITAA 1997 provides that expenditure incurred for repairs to any premises, or part of premises, held or used by you solely for purpose of producing assessable income is an allowable deduction.
Taxation ruling TR 97/23 Income tax: deductions for repairs (TR 97/23). TR 97/23 explains that 'repair' has its ordinary meaning which is the remedying or making good of defects in, damage to, or deterioration of the property to be repair and contemplates the continued existence of the property.
The roof replacement is to remedy or make good of defects on the roof of a property that has been deterioration in many years of used. The additional material does not add new or different function to the roof.
Therefore, the cost of works relating these replacements are repairs and as such are deductible under section 25-10 of the ITAA 1997.
This ruling applies for the following period:
Year ended XX 20XX
The scheme commenced on:
XX 20XX
Relevant facts and circumstances
You own an investment property (the property).
You are single owner of the property and conducted a professional inspection prior to purchase of the property.
You rented out the property which managed by the property manager agent.
The last few years, you noticed the roof were damaged and deterioration over the time.
You engaged with the builder to undertake the necessary roof repair.
During the repair period, the property had not been vacant.
You did not claim insurance for the expenses.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 8-1
Income Tax Assessment Act 1997 section 25-10