Private ruling: Carrying on a business
Date of advice: 7 August 2019
Published: October 2019
Ruling period: Year ended 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you carrying on a business of letting rental accommodation? | A1: Yes. You meet the relevant factors contained in Taxation Ruling TR 97/11. Further information about carrying on a business can be found by searching 'QC 31733' on ato.gov.au.

Relevant facts and circumstances: You have an ownership interest in nine rental properties. You own most of the properties solely and some you own in partnership with a relative. You manage all the activities pertaining to running the properties as rentals. You: · Source the tenants · Enter into rental agreements · Collect the rent · Do the repairs that do not require a licenced tradesperson · Do most of the cleaning and gardening You estimate that you work 9am-5pm every day on the business. You have daily administration tasks that you conduct every day including: · Checking bank statements · Paying council rates, water rates and strata levies · Updating tenant ledgers · Emailing ledgers to tenants · Issuing breach notices to tenants · Drafting entry notices · Undertaking three monthly inspections · Analysing market rentals and purchases · Transferring funds from tenants rental accounts to bill payments accounts You complete the following daily maintenance duties: · Mail collection · Lawn mowing and gardening · Cleaning gutters · Garbage takeout & general cleaning of bins and common property areas · Supervision of trades person You also have extra administration tasks which can vary: · Attending court when required · Interview prospective tenants · Complete reference checks on new tenants You complete the following extra maintenance duties which can vary: · Painting · Basic carpentry · Installation of solar lights · Basic tilling and repairs You have provided a brief business plan. Your relative does not assist you in managing the properties. This includes the ones you purchased together. You do not have a written partnership agreement with your relative in relation to the properties. You do not have any other employment.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 6-5 | Income Tax Assessment Act 1997 section 995-1