Private ruling: Rental property - repair or improvement
Date of advice: 1 October 2021
Published: December 2021
Ruling period: Period ended 30 June 20XX
Date scheme commenced: 1 July 202XX

Ruling: Q1: Are you entitled to a deduction for the work done to the roof, flashing, gutters, downpipes and battens of your rental property as a repair? | A1: Yes. Section 25-10 of the Income Tax Assessment Act 1997 allows a deduction for the cost of repairs to premises used solely for income producing purposes. In this instance, the replacement of part of the roof, gutters, downpipes, flashing and battens is considered a repair because the work merely restored the efficiency of function of the property.

Relevant facts and circumstances: You purchased the rental property in 20XX. You engaged a roofing contractor to fix the leaking roof soon after it was brought to your attention. The roof was made of corrugated iron and slate tiles. You replaced the leaking corrugated iron roofing with the same material. You replaced some of the leaking slate tiles with the same material. You replaced some timber battens because they were rotten. You replaced the gutters, downpipes and flashing because they were rusting.

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


This ruling applies for the following period: