Rental Property Expenses Schedule (ATO)

Note: This is a checklist, not advice.

Expense claims are subject to limitations based on their character, timing, extent of attribution to rental activities and sufficient substantiation.

*Some expense claims may typically be required to be spread over more than one tax year.

• Advertising for tenants

• Property management fees

• Bank fees paid on an account used for rental transactions

• Body corporate or strata fees paid

• Borrowing costs*

• Mortgage discharge costs

• Loan establishment fees*

• Capital allowances, decline in value, depreciation (see limitation from 9 May 2017)*

• Cleaning

• Council rates

• Gardening maintenance

• Lawn mowing

• Tree pruning

• Pool cleaning

• Maintenance of grounds, buildings, contents

• Insurances including building, contents and landlords insurance

• Interest on loan(s) or credit cards used to purchase the property or to pay for anything directly associated with the property

• Land tax

• Legal fees – lease preparation

• Legal fees – debt collection, eviction etc

• N.B. Legal fees associated with the property purchase are generally not deductible, but would usually form part of the property’s cost base for CGT purposes.

• Pest control – prevention or eradication

• Repairs to property, equipment or fixtures (distinguish replacements or complete renewals which may need to be capitalised)

• Removal of asbestos(1)

• Painting

• Replacing capital items – costs may need to be allocated over the effective life of the asset *

• Stationery, postage, telephone calls and internet access directly related to managing the property, e.g. collecting rent or organising maintenance

• Travelling to inspect, undertake maintenance and repairs or improvements to the property. In some circumstances this can include accommodation.

Note: This deduction not available from 1 July 2017.

• Water rates and water consumption

• Other asbestos removal costs, such as the removal of asbestos roofing, may be claimable on the same basis.

* RealRenta Subscription Fees

However note that these environmental protection provisions are ‘provisions of last resort’ – meaning that if a deduction is available under any other section of the Tax Act (e.g. for capital works, or repairs), an environmental protection deduction cannot be claimed.


Source: https://atotaxrates.info/tax-deductions/rental-property-tax-deductions/


Jason Gwerder
Thursday, 11 April 2019

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