Private ruling: Carrying on a business
Date of advice: 13 April 2021
Published: June 2021
Ruling period: Year ending DD MM YYYY
Date scheme commenced: DD MM YYYYY

Ruling: Q1: Am I carrying on a business of renting properties? | A1: Yes. From the information provided, you meet the definition of a 'business' outlined in section 995-1 of the Income Tax Assessment Act 1997 (ITAA 1997) and you meet the relevant factors contained in Taxation Ruling TR 97/11 Income Tax: am I carrying on a business of primary production? Considering your circumstances, we consider the activities you are undertaking to represent that of a business. Further information about carrying on a business can be found by searching 'QC 31733' on ato.gov.au.

Relevant facts and circumstances: You own and rent X properties. Each property generates a profit. You spend X-X days per week carrying out the following tasks: • You interview all prospective tenants and draw up leases. • You conduct all maintenance unless a professional is required. • You arrange maintenance if a professional is required. • You arrange smoke alarm testing. • You conduct all gardening which includes mowing, pruning and replanting. • You conduct all maintenance of the exteriors of each property which include cleaning of driveways, patios, paths and exterior walls. • You conduct regular inspections of the properties. • You conduct final cleans and inspections of all properties including preparation of required condition reports including being available for key changeovers. • You prepare and distribute notices, advices for rent increases and entry requests for inspections. • You liaise with the Residential Tenancies Authority (RTA) providing all required documentation and lodgement of rental and bond income. • You attend RTA seminars regarding managing rental properties. • You provide own equipment including truck, trailers, chain saws and building tools for the maintenance of the properties. • You are on call to the tenants and can be contacted directly.

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