Private ruling: Deduction - repairs
Date of advice: 2 June 2026
Published: 17 August 2026
Ruling period: Year ended 30 June 20XX | Year ended 30 June 20YY
Date scheme commenced: DD MM 20XW

Ruling: Q1: Can we deduct payments made to the Owners' Corporation under section 8-1 or section 25-1 of the Income Tax Assessment Act 1997 for repairs to a building, where owners paid the Owners' Corporation directly and the Owners' Corporation then paid the builder? | A1: Yes.

Relevant facts and circumstances: A and B own units in a building that was damaged as a result of a storm. A and B rented out those units on an ongoing basis. Due to the damage, tenants had to move out until works that affected the relevant units were completed. Remedial works were undertaken to the building. A and B paid amounts as special levies raised to cover the cost of the works. The building works were completed DDMM 20YY, and the Owners Corporation have paid for the works.

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