Private ruling: : R ental properties
Date of advice: 13 September 2022
Published: December 2022
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you carrying on a business (as defined in subsection 995-1(1) of the Income Tax Assessment Act 1997 (ITAA 1997) of letting rental properties? | A1: Yes. It is considered that you are carrying on a rental property business as the scale and personal involvement of your activities is significant and the repetition and regularity of the activities are carried out in an organised and businesslike manner.

Relevant facts and circumstances: You own and manage multiple rental properties, which are leased to tenants on both short term and long term agreements. You provide furnished properties except for one and regular services. You advertise for new tenants through online portals and social media and complete the selection process for tenants, including residential tenancy agreements and associated documentation. You have extensive personal involvement in the activities and attend to all aspects of each property's management. You spend a significant number of hours on tasks and activities each week and have a set routine of job completion activities with specific timeframes. Regular inspections of the properties are conducted fortnightly. Pest inspections and smoke alarm testing occurs as required. Tenants seek assistance for repairs/issues through access to your mobile number.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 995-1