ATO update: Tax deduction rules on travel to rental properties

Posted on Nov 29, 2018 by Accounting Directions

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