Private ruling: Rental property maintenance
Date of advice: 9 July 2018
Published: September 2018
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you entitled to a deduction for the cost of replacing widows and window frames together with accompanying brickworks surrounding the windows of your rental property? | A1: Yes, paragraph 15 of TR 97/23 explains that repair for the most part is occasional and partial, and involves restoration of the efficiency of function of the property being repaired without changing its character and may include restoration to its former appearance, form, state or condition.

Relevant facts and circumstances: You have owned and rented an apartment which has produced rental income for over 20 years. The property is situated near beach frontage and is subject to various weather conditions. The window frames of the property have deteriorated over time due to saltwater erosion from the sea spray and sea breezes. The windows and window frames do not function efficiently due to the deterioration of the frames. To repair the damage to the property the window frames must be removed in their entirety and replaced. The removal of the existing window frames and the installation of new window frames will involve framework cutting into the existing brickwork. The replacement of the aluminium windows will not improve the functionality of the property or change its character.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 25-10 Taxation Ruling TR 97/23