Private ruling: Rental property repair expenses
Date of advice: 22 February 2023
Published: 11 April 2023
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Can you deduct the repair expenses incurred in the 20XX income year for your rental property under section 25-10 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes. The replacement of the damaged and malfunctioning roller doors at the rental property was not a renewal of any entirety, nor was it an improvement nor can the expense be characterised as an outgoing of a capital nature. Therefore, the expenses incurred to replace the two roller doors are deductible as a repair expense in the year in which the expense was incurred under section 25-10 of the ITAA 1997.

Relevant facts and circumstances: You own an investment property which you purchased around XX years ago. The property has been rented or genuinely available to rent since its purchase. The property has two garage doors. In the relevant income year a tenant brought the deteriorated state of the garage doors to your attention. The material mesh on the roller door guides had come away and the lugs were rusty and broken which prevented the doors from functioning properly. You replaced the doors with new doors which were substantially the same as the previous doors and did not have significantly improved features or functions than the doors which were replaced.

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