Private ruling: Deductions - rental repairs
Date of advice: 22 May 2026
Published: 3 August 2026
Ruling period: Year ended DD/MM/20YY
Date scheme commenced: DD/MM/20YY

Ruling: Q1: Can you claim a deduction for the following expenses you incurred to your rental property under section 25-10 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes. You can claim an immediate deduction in the income year you incurred the repair (or maintenance) expenses for the works on the roof, rear awning, skylight, windows and balustrade. Balustrade Paragraph 96 of TR 97/23 provides that to constitute a 'repair' for the purposes of section 25-10 of the ITAA 1997, work done to meet requirements of regulatory bodies must satisfy the general principles and the various factors discussed in the ruling. Work done to repair property that also happens to meet the requirements of regulatory bodies is deductible under the section. However, work done solely to meet requirements of regulatory bodies is not a 'repair' for the purposes of the section. It is considered that the work undertaken to the balustrade are repairs as the work remedied rusted areas and the structurally unsafe balustrade. Although there may be some improvement because you needed to meet current safety standards, this represents a minor and incidental improvement. The balcony and balustrade's essential efficiency of function has not changed nor has the character of the balcony and balustrade. Consequently, a deduction is allowable under section 25-10 of the ITAA 1997 for the costs incurred on works undertaken to the balustrade. House roof, rear awning, skylight, and windows The other expenses you have incurred on the house roof, rear awning, skylight, and windows are also classed as repairs in accordance with TR 97/23 and are therefore deductible under section 25-10 of the ITAA 1997.

Relevant facts and circumstances: In MM/20YY, you (Person A and Person B) purchased a property located at XXX (the property). The property was made available for rent from settlement date and the first lease commenced on DD/MM/20YY. In MM/20YY, you carried out some works on the roof, which you classed as initial repairs and capital expenditure. In 20YY, following a number of severe storms, water ingress became evident in the dwelling. You engaged a roofing specialist to inspect the roof. The specialist recommended a full replacement of the roof to prevent further water damage. A X roof was selected as a lightweight cost effective replacement of tiles. You have provided the letter from the roofing specialist as evidence of this. As a result of the storms, the skylight exhibited movement and was leaking. This was replaced on a like for like basis. The rear awning structure of the property developed leaks. Upon inspection it was discovered several supporting timbers had shifted and sustained significant water damage. It was determined a full replacement of the roof and supporting structure was the most cost-effective and practical solution. You identified water damage on internal walls which was traced to X windows that were leaking water. The original windows were aluminium framed and were replaced with like for like windows. The balustrade, which was constructed with the original build of the property, was not structurally safe and was rusting both within the metal structure, and at the metal fixture points to the tiles. You were required to raise the height of this to meet current safety standards. All works were carried out in the 20YY tax year. You have provided invoices for all completed works. The tenant was able to remain living in the property whilst the works were completed.

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