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Edited version of private advice
Authorisation number: 1052509704672
Date of advice: 20 February 2026
Ruling
Subject: Rental deductions
Question
Are you entitled to a deduction for the cost of replacement of roof on your rental property?
Answer
Yes
Based on the information provided to the Commissioner you are able to claim a deduction for the replacement of the roof on your rental property.
The cost of replacing the roof is an allowable deduction under section 25-10 of the Income Tax Assessment Act 1997 (ITAA 1997).
Paragraph 40 of TR 97/23 specifically states that a roof is only part of a building and does not constitute an 'entirety'. The building itself is the 'entirety'.
The required work to rectify the problem is not an initial repair, is not the replacement of an entirety, and is not an improvement.
The roof was merely repaired with its modern equivalent and to restore the original function.
Therefore, when you are replacing the roof, the work carried out is a repair, and deductible under section 25-10 of the ITAA 1997.
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
You own a rental property.
The property has been continually rented for several years.
The property is subject to extreme weather conditions due to the location and has an increased rate of erosion.
As a result, you have been required to replace the roof, flashing & battens. The original roof was finished with cement based tiles which have not withstood the harsh environment, the coloured glazing deteriorates from salt & sun exposure the porous base becomes wet with rain & fog conditions, this can promote fungal rot in structural timbers as they dry out & contract in size, they expose the timber structure.
You have replaced the roof with colour bond, as it is more durable to the location of the property and is a lighter material which enhances the structural soundness of the proper.
The total cost of the roof has been incurred during the relevant financial year.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 25-10