ATO update: Tax deduction rules on travel to rental properties

The ATO has enforced strict guidelines on tax deductions for rental property owner’s travel expenses.

As a rental property owner you are not able to claim deductions for travel expenses relating to inspecting, maintaining or collecting rent. If you have already claimed a tax deduction for the cost of travel to and from your property in your 2018 return, you will need to request an amendment. The law change came into effect on 1 July 2017 and affects tax returns from 2017-18 onwards.

Exclusions
You may claim these travel expenses on your tax return if you are carrying on a rental property business or are an excluded entity.

An excluded entity is a:

  • Corporate tax entity
  • Superannuation plan that is not an SMSF
  • Public unit trust
  • Managed investment trust
  • A unit trust or a partnership, all of the members of which are entities of a type listed above

Posted on 29 November '18 by , under tax.

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