Private ruling: Deductions - rental repairs
Date of advice: 5 January 2022
Published: March 2022
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Can you claim a deduction for replacing an asbestos roof? | A1: Yes. Your expenses meet the requirements in Taxation Ruling TR 97/23 and are deductible. Further information about repairs can be found by searching 'QC 23635 on ato.gov.au

Relevant facts and circumstances: You own a rental property. The property has been continually rented for many years. The property is situated between a surf beach and a river and is subject to extreme weather conditions. These conditions include salt air and strong winds. The original roof contained asbestos. Due to the asbestos and the extreme weather conditions, the roofing deteriorated at a faster pace and had to be replaced as it was a danger to the tenants. You have replaced the roof with colorbond, which is more durable than the existing roof.

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