Private ruling: Rental repairs - special levy
Date of advice: 5 August 2021
Published: October 2021
Ruling period: Year ended 30 June 2019
Date scheme commenced: 01 July 2018

Ruling: Q1: Is the Special Levy paid to your Body Corporate considered repairs under section 25-10 of the Income Tax Assessment Act 1997 (ITAA 97)? | A1: Yes.

Relevant facts and circumstances: You purchased an apartment and you earned rental income. The property is approximately xx years old. The building is the product of a conversion of an existing building. X years after the conversion, the complex began to deteriorate allowing water into the building. The Body Corporate appointed relevant professionals to determine the scope of work and all necessary repairs were subsequentially carried out and paid for by the Body Corporate. The Body Corporate paid for the repairs by way of a special levy imposed on all unit owners.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 25-10