Private ruling: Rental property expenses
Published: October 2011
Ruling period: Year ended 30 June 2011
Date scheme commenced: 1 July 2010

Ruling: Q1: Are you entitled to a deduction for painting and repairs? | A1: Yes.


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

Reasons for decision: Summary: Section 25-10 of the Income Tax Assessment Act 1997 (ITAA 1997) allows a deduction for expenditure on repairs to income producing premises, provided the expenditure is not capital in nature. Taxation Ruling TR 97/23 explains deductions for repairs. It states that in section 25-10 the word 'repairs' has its ordinary meaning, which is the remedying or making good of defects in, damage to, or deterioration of, property. It involves restoration of the efficiency of function of the property without changing its character. In your case, you have painted the property and undertaken repairs to the pergola. As the work done makes good deterioration of the property, you are entitled to a deduction for the painting and repairs.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet. | Relevant facts: You have had a rental property since 2003. | The property has been rented at commercial rates for the whole time. | You have painted and undertaken repairs to the pergola.