Delivering expert solutions to your financial needs.
1300 RKTAXATION
1300 758 292
Rent Income
The income received is taxable to the owners of the property in the same proportion as the ownership interest as shown on the title. The rent received must be at normal market rates to be able to claim all the expense in full and must be declared in the year it is received.
If part of your property is used to earn rent, you can claim expenses relating to only that part of the property. You will need to work out a reasonable basis to apportion the claim. As a general guide, apportionment should be made on a floor-area basis, that is, by reference to the floor area of that part of the residence solely occupied by the tenant, together with a reasonable figure for tenant access to the general living areas, including garage and outdoor areas if applicable.
Interest Claims
Interest paid on the loan used to purchase the property is deductible, provided that all the money borrowed was used to purchase the property. For accounts that are a line of credit and used privately as well, the interest claim needs to be apportioned for the private expenses.
Tax Deductions
You can claim expenses relating to your rental property but only for the period your property was rented or available for rent; for example, advertised for rent.
Expenses could include:
Building cost write off
If the building is under 25 years old you will be entitled to claim a deduction of 2.5% per year of the original cost of construction of the building for up to 40 years from the original date of construction.
