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Edited version of private advice
Authorisation Number: 1051936957533
Date of advice: 5 January 2022
Ruling
Subject: Deductions - rental repairs
Question
Can you claim a deduction for replacing an asbestos roof?
Answer
Yes. Your expenses meet the requirements in Taxation Ruling TR 97/23 and are deductible. Further information about repairs can be found by searching 'QC 23635 on ato.gov.au
This ruling applies for the following period:
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You own a rental property.
The property has been continually rented for many years.
The property is situated between a surf beach and a river and is subject to extreme weather conditions. These conditions include salt air and strong winds.
The original roof contained asbestos. Due to the asbestos and the extreme weather conditions, the roofing deteriorated at a faster pace and had to be replaced as it was a danger to the tenants.
You have replaced the roof with colorbond, which is more durable than the existing roof.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 25-10