Earlier this year, the ATO contacted two million Australian property investors to let them know the rules have changed.
From 1 July 2017, travel expenses related to residential rental properties were no longer allowed to be claimed as deductions by investors and it’s important for Australian landlords to know what will be different when they go to file this year.
The ATO’s notice to property investors
The ban on travel-related tax deductions isn’t the only measure the ATO has taken to tighten up on real estate investors. A restriction on claiming depreciation deductions for second-hand items in properties has also become law.
Assistant Commissioner Kath Anderson wants investors to know mistakes and false claims will not be tolerated.
“Incorrect rental property claims will not go unnoticed,” she said
What you can you claim as a property investor?
Landlords can still claim expenses related to their rental property for the period when the space was rented or available for rent.
Such expenses might include:
- Body corporate fees,
- Borrowing expenses,
- Advertising for tenants,
- Repairs and maintenance,
- Gardening and law care,
Fortunately, as Civium customers, you have nothing to worry about. Your property manager will keep track of all related expenses throughout the year and ensure you have the necessary invoices and receipts come tax time.