Getting Your Rental Property Taxes Right

Getting Your Rental Property Taxes Right

The Australian Taxation Office (ATO) reminds rental property owners and their tax agents to be extra careful when filing their tax returns. 

A recent review found that 9 out of 10 rental property owners need to correct their returns. Here’s what you need to know to avoid errors:

  • Include All Rental Income: Make sure you report all rental income, including earnings from short-term rentals and any other rental-related income.
  • Report Income Accurately: Report rental income in the year when the tenant pays it and as the gross amount received before deductions.
  • Avoid Double-Dipping: Don’t claim expenses you have subtracted from your net rental income.
  • Expense Categories: Expenses fall into three categories: those you can’t claim, those eligible for an immediate deduction, and those claimable over several years.
  • Interest Expenses: Be careful when apportioning interest expenses, especially if part of the loan was used for private purposes.
  • Maintain Records: Keep records showing your expenses related to producing rental income.
  • Apportion Expenses: If your property is not used for rental income (e.g., for personal use), divide your deductions accordingly.

Remember, you’re responsible for the accuracy of your tax return, even with a tax agent such as ourselves.

For personalised guidance, contact your Simmons Livingstone accountant on 1800 618 800 or via email to

Subscribe to our newsletter

Enter your details below to receive regular updates, industry news and announcements

  • This field is for validation purposes and should be left unchanged.