| Disclaimer You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of private advice
Authorisation Number: 1052393499117
Date of advice: 12 June 2025
Ruling
Subject: GST - rental property
Question 1
Can you claim a deduction in the 20XX-XX income year for the work done to the verandah on your rental property?
Answer 1
Yes. You can claim a deduction for the work done to the verandah because it does no more than restore the damaged elements to their former standard.
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commenced on:
23 October 20XX
Relevant facts and circumstances
Property at XXX has been owned since Month 20XX and was first available for rent Month 20XX after completion of renovations and has been rented continuously since and is managed by a real estate agent.
The replacement deck / verandah work undertaken on deck/verandah between Day Month XXX to Day Month 20XX.
The deck was required to be replaced as the timber deck, most of the timber bearers and the timber handrail had rotted and the metal roofing underneath had rusted.
The deck / verandah is over the top of a garage that is under the deck / verandah and the handrailing was required for safety.
The tenant remained in the property during the period that the replacement of the deck / verandah was done.
The deck / verandah is the same size as the original structure.
You provided photos showing the deteriorated condition of deck / verandah and after replacement had been done to show materials and size of the structure. During replacement of the deck / verandah you made the decision to use tiles instead of timber to resurface as it was the cheaper option
Relevant legislative provisions
Income Tax Assessment Act 1997 section 8-1
Income Tax Assessment Act 1997 section 25-10
Copyright notice
© Australian Taxation Office for the Commonwealth of Australia
You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
