Private ruling: Rental Expenses
Date of advice: 3 April 2019
Published: May 2019
Ruling period: Year ending 30 June xxxx
Date scheme commenced: 01 July xxxx

Ruling: Q1: Are your special levy charges deductible as a rental expense? | A1: Yes. Your expenses meet the requirements in Taxation Ruling TR 97/23 and are deductible. The relevant works are not considered to be initial repairs or an improvement, and given the works were limited to the remediation of any spalled concrete it does not constitute the replacement of an entirety. Further information about repairs can be found by searching 'QC 55249' on ato.gov.au.

Relevant facts and circumstances: You own a share in a rental property. You have owned the property as an investment since xxxx. Your balcony had been identified with concrete rot and needed repairs. You confirmed the balcony foundations were not removed only the concrete was repaired. The body corporate started a special purpose remediation fund specifically for repairs to the balcony. Special levies were charged to you for repairs to the balcony.

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