Private ruling: Rental property expenses – replacement roof
Date of advice: 23 January 2019
Published: May 2019
Ruling period: Year ending 30 June 2018
Date scheme commenced: 1 June 2017

Ruling: Q1: Are you entitled to a deduction for replacement of the roof of your rental property? | A1: Yes As your property is used for income producing purposes and the replacement of the roof is not an initial repair, is not the replacement of an entirety and is not an improvement, a deduction is allowable under section 25-10 of the Income Tax Assessment Act 1997 .

Relevant facts and circumstances: The exterior of the roof on your owned rental property had deteriorated mostly due to rust, believed to be caused by the close proximity to salty water. Further deterioration would potentially cause water to get inside the roof space and cause more damage. The roof was made from XYZ This deterioration occurred after you had purchased the property. You hired a contractor to repair the roof during the year ended 30 June 2018. As a result 80% of the roof has been replaced with the same material. There were no additional construction or improvements made. Your contractor has provided a copy of the quote and invoice listing the work completed. Your insurer did not cover any of the costs for the repair.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 8-1 | Income Tax Assessment Act 1997 Section 25-10