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Edited version of private advice
Authorisation Number: 1052032990360
Date of advice: 13 September 2022
Ruling
Subject: Rental properties
Question
Are you carrying on a business (as defined in subsection 995-1(1) of the Income Tax Assessment Act 1997 (ITAA 1997) of letting rental properties?
Answer
Yes.
It is considered that you are carrying on a rental property business as the scale and personal involvement of your activities is significant and the repetition and regularity of the activities are carried out in an organised and businesslike manner.
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You own and manage multiple rental properties, which are leased to tenants on both short term and long term agreements.
You provide furnished properties except for one and regular services.
You advertise for new tenants through online portals and social media and complete the selection process for tenants, including residential tenancy agreements and associated documentation.
You have extensive personal involvement in the activities and attend to all aspects of each property's management. You spend a significant number of hours on tasks and activities each week and have a set routine of job completion activities with specific timeframes.
Regular inspections of the properties are conducted fortnightly. Pest inspections and smoke alarm testing occurs as required. Tenants seek assistance for repairs/issues through access to your mobile number.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 995-1
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