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Edited version of private advice
Authorisation Number: 1051872053814
Date of advice: 05 August 2021
Ruling
Subject: Rental repairs - special levy
Question
Is the Special Levy paid to your Body Corporate considered repairs under section 25-10 of the Income Tax Assessment Act 1997 (ITAA 97)?
Answer
Yes.
This ruling applies for the following period:
Year ended 30 June 2019
The scheme commences on:
01 July 2018
Relevant facts and circumstances
You purchased an apartment and you earned rental income.
The property is approximately xx years old. The building is the product of a conversion of an existing building.
X years after the conversion, the complex began to deteriorate allowing water into the building.
The Body Corporate appointed relevant professionals to determine the scope of work and all necessary repairs were subsequentially carried out and paid for by the Body Corporate.
The Body Corporate paid for the repairs by way of a special levy imposed on all unit owners.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 25-10