Private ruling: Rental deductions
Date of advice: 8 August 2025
Published: 20 October 2025
Ruling period: 1 July 20XX to 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Is the cost of a major repair to the roof of a building amounting to $XXX a deductible repair expense under section 25-10 of the Income Tax Assessment Act 1997? | A1: Yes. The work carried out on the roof was a repair to the building as the work did not change the building's character, was not an initial repair and restored its original functionality.

Relevant facts and circumstances: 1. The X partners in the partnership equally own the building. 2. The building has been held in the family for over XX years and was passed intestate on D MM YYYY to the partners. 3. The building has been leased continually for XX years. 4. In 20XX, the partners were required to replace the entire roof and insulation of the rental factory due to leaks that had developed. 5. At the time the building was taken over by the partners, there were no reports of any major leakages. 6. The current tenant was still occupying the building as repair work to the roof was being carried out. 7. The roof was replaced with the exact same materials. The old materials were disposed of. Framing beams were not replaced. 8. The family partnership incurred a total cost of $XXX to complete the repair work.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 25-10 | Income Tax Assessment Act 1997 subsection 25-10(3)