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Edited version of private advice
Authorisation Number: 1052511810238
Date of advice: 27 February 2026
Ruling
Subject: Rental deductions
Question 1
Are the full expenses associated with the restoration of termite damage to your rental property a repair and therefore deductible under section 25-10 of the Income Tax Assessment Act 1997 (ITAA 1997)?
Answer 1
Yes.
Section 25-10 of the ITAA 1997 provides that you can deduct expenditure you incur for repairs to premises that you held solely for the purpose of producing assessable income.
This ruling applies for the following period:
Year ended DD MM 20YY
The scheme commenced on:
DD MM 20YY
Relevant facts and circumstances
You and your spouse own a property as tenants in common from 20YY.
The property was built in 20YY.
You have used the property to produce rental income since you have owned it.
Termite damage was discovered during the rental period, necessitating repairs to a section of the house.
The property was advertised for rent, when the termite damage was discovered.
Termite damage was discovered within the timber frame of a section of the house during the rental period, which meant that repairs were required.
There were XX walls and a walk-in wardrobe that required repairs. The entire house had to be exposed to inspect the damage.
The repairs, costing $XX, included replacing parts of affected areas of the property.
The repair work was carried out between DD MM 20YY and DD MM 20YY.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 25-10
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