ATO – What attracts our audit attention
To help you taxpayers get things right, you should consider the behaviours, characteristics and tax issues t
Recent legislation has changed the deductibility of travel expenses for residential rental properties.
2017 Income Tax Return
Generally, you can claim a deduction for the cost of travel you incur to inspect or maintain rental properties or to collect rent.
You can claim travel expenses for:
2018 Income Tax Return (and future years)
In the 2017–18 Budget, the Government announced that it intended to deny all travel deductions relating to inspecting, maintaining, or collecting rent for a residential investment property from 1 July 2017.
It is intended that travel expenditure incurred in gaining or producing assessable income from residential premises used as residential accommodation will not be deductible. The expenditure will also not be recognised in the cost base of the property for CGT purposes.
You will be able to continue to deduct travel expenditure if:
An excluded class of entity will be:
For further information on what deductions can be claimed for rental properties, please download Griffin & Associates rental property checklist