Private ruling: Deductibility of rental property expenses - repairs
Date of advice: 17 November 2025
Published: 5 January 2026
Ruling period: Income year ending 30 June 20XX
Date scheme commenced: DDMMYY

Ruling: Q1: Are you entitled to claim a deduction under section 25-10 of the Income Tax Assessment Act 1997 for the costs incurred to replace the deck at your rental property? | A1: Yes. The replacement of the deck of the rental property was required due to the extent of deterioration. It is not the replacement of an entirety as the deck is only a part of the building with the building being the entirety. Also, based on the facts of the case, the replacement is not an improvement or an initial repair. Therefore, it is a repair that is deductible under section 25-10 of the ITAA 1997. For more information see Taxation Ruling TR 97/23 Income tax: deductions for repairs .

Relevant facts and circumstances: You the owner of a residential rental property (the property) which has been rented out since MM 20YY. The property contains a deck. The deck has deteriorated over time due to age, weathering and normal tenant use. A recent building inspection identified that the deck structure is in poor condition and requires replacement for safety reasons. The work involves the existing deck and stairs and replacing them with new materials of substantially the same type and design. The replacement cost is $X inc. GST The work will be performed by carpenters. There will be no enlargement, redesign or substantial change to the function of the deck. It will continue to provide the same use and amenity as before. The replacement is a like-for-like restoration of the existing structure. There were no improvements or additions made to the property. The property has been continuous used to produce assessable rental income during the period.

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