Private ruling: GST - rental property
Date of advice: 12 June 2025
Published: 11 August 2025
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 23 October 20XX

Ruling: Q1: Can you claim a deduction in the 20XX-XX income year for the work done to the verandah on your rental property? | A1: Yes. You can claim a deduction for the work done to the verandah because it does no more than restore the damaged elements to their former standard.

Relevant facts and circumstances: Property at XXX has been owned since Month 20XX and was first available for rent Month 20XX after completion of renovations and has been rented continuously since and is managed by a real estate agent. The replacement deck / verandah work undertaken on deck/verandah between Day Month XXX to Day Month 20XX. The deck was required to be replaced as the timber deck, most of the timber bearers and the timber handrail had rotted and the metal roofing underneath had rusted. The deck / verandah is over the top of a garage that is under the deck / verandah and the handrailing was required for safety. The tenant remained in the property during the period that the replacement of the deck / verandah was done. The deck / verandah is the same size as the original structure. You provided photos showing the deteriorated condition of deck / verandah and after replacement had been done to show materials and size of the structure. During replacement of the deck / verandah you made the decision to use tiles instead of timber to resurface as it was the cheaper option

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