Do I need to declare rental income?

When you lodge your tax return, you need to let the Australian Taxation Office (ATO) know how much rent and rental-related income you received over the financial year.

Rental-related income can include:

  • Rental bond returns (e.g. if your tenant defaulted on rent or caused damage to your property)
  • Insurance payouts (e.g. when you receive a payment to compensate for damage to your property)
  • Letting and booking fees you received
  • Any amount a tenant pays you to cover the cost of repairs

You can find out more about rental income you must declare at the ATO website.

What rental expenses can I claim?

You can claim tax deductions for several expenses while your property is rented or available for rent.

These may include:

  • Management costs (e.g. property agent fees and commission)
  • Land tax
  • Body corporate fees and charges
  • Maintenance costs (e.g. cleaning, gardening, pest control, repairs and maintenance)
  • Property loan interest expenses
  • Insurance (e.g. building, contents and public liability)
  • Some legal expenses
  • Depreciation

What rental expenses can’t I claim?

You can’t claim tax deductions on:

  • Expenses someone else has paid (e.g. electricity bills paid by your tenant)
  • Property purchase costs (e.g. stamp duty)

You can find out more about rental expenses you can claim at the ATO website.

Things you should know

This page is intended to provide general information only and does not take into account your individual objectives, financial situation or needs. The above information is not tax advice. Taxation laws are complex and subject to change. Commonwealth Bank does not provide tax (financial) advice under the Tax Agent Services Act 2009 (Cth). You should consider seeking independent tax advice from a registered tax agent, accountant or adviser before you make any decisions based on this information.