Private ruling: Rental property deductions
Date of advice: 18 December 2025
Published: 9 February 2026
Ruling period: Year ended 30 June 20YY
Date scheme commenced: DD MM 20YY

Ruling: Q1: Are you entitled to an immediate income tax deduction under section 25-10 of the Income Tax Assessment Act 1997 (ITAA 1997) for the restumping of your rental property? | A1: Yes. Section 25-10 of the ITAA 1997 states you can deduct expenditure you incur for repairs to premises (or part of premises) or a depreciating asset that you held or used solely for the purpose of producing assessable income. The restumping was completed to remediate the damage and deterioration caused by concrete cancer. The repairs did not improve or change the character of the stumps. As the property is solely used for the purpose of producing assessable income, you can claim a deduction for the restumping under section 25-10 of the ITAA 1997.

Relevant facts and circumstances: On DD MM 20YY you purchased the property located at the property. The property was purchased at auction and no building and pest reports were obtained. The property was purchased on an 'as is' basis. The property was in original condition at the time of purchase. After purchasing the property renovations were completed including internal and external painting, carpet removal, timber floor sanding, complete bathroom and kitchen replacement. You did not have a building inspection report done on the property either before, during or after the renovations. The property was made genuinely available for rent on DD MM 20YY. The property has been continuously rented since that date. On DD MM 20YY, your real estate agency inspected the property and identified that the existing concrete stumps had concrete cancer and were failing to support the house. On DD MM 20YY, a quote was obtained from Company A. The tenants remained in the property during the period the house was being restumped. Between DD MM 20YY and DD MM 20YY you received invoices from Company A for the restumping works.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 8-1 | Income Tax Assessment Act 1997 section 25-10