Private ruling: Deductions - rental property expenses
Date of advice: 31 July 2025
Published: 13 October 2025
Ruling period: 1 July 20XX to 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are the payments made for the sub-flooring repair, flooring repair, the built-in subfloor ventilation system and the built-in wardrobes a deductible repair expense under section 25-10 of the Income Tax Assessment Act 1997 ? | A1: Yes. The work carried out on the flooring, sub-flooring repair, flooring repair, the built-in subfloor ventilation system and the built-in wardrobes is considered a repair to the property as the work did not change the property's character and restored its original functionality.

Relevant facts and circumstances: 1. Individual A is the sole owner of a residential rental property (the property). 2. The property was purchased on DD MM YYYY. 3. The property has been rented out at market value since the property was purchased to unrelated parties. 4. On DD MM YYYY, the tenants of the property identified cracks in the tile flooring in one of the rooms of the property, posing a risk to the tenants. 5. The property was vacated soon after the cracks were identified to commence the repair work. 6. Due to the lease being in place with the tenant, the landlord paid for alternative accommodation for the tenant during the period of repair. 7. An insurance claim was discussed with an insurance company in relation to the floor repairs, but it was concluded it was not a claimable incident under the policy. 8. The original flooring was X by X white ceramic tiles. These were replaced with laminate floorboards. Efforts were made by individual A to replace the damaged tiles with tiles made with exactly the same material as the original tiles, but this was uneconomic due to the time it would take, and the cost involve. The new floorboards were more economical as they were cheaper, faster and lower quality. 9. The wardrobe needed to be removed as it was built into the floor where the subflooring and structural beams below needed to be replaced. Due to it being made out of flimsy particleboard it was largely destroyed in the removal and building process. 10. Individual A incurred the costs to complete the repair work.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 25-10 | Income Tax Assessment Act 1997 subsection 25-10 (3)