Private ruling: Rental property expenses
Date of advice: 10 March 2023
Published: 1 May 2023
Ruling period: year ending 30 June 20XX
Date scheme commenced: XX March 20XX

Ruling: Q1: Are your expenses deductible as repairs? | A1: Yes. Your expenses meet the requirements in Taxation Ruling TR 97/23 and are deductible. Further information about repairs can be found by searching 'QC 55249' on ato.gov.au

Relevant facts and circumstances: You own and operate a rental property. You incurred expenses totalling $XX for the eradication of termites and subsequent repairs to walls (plastering and painting) after the termites were removed. The termites and termite damage were not present when you originally purchased the property. You had a building and pest inspection undertaken pre purchase and you would not have purchased it if they were present. The property was rented out before and after the repairs took place.

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