From 1 July 2017, travel expenditure incurred in maintaining or inspecting your residential rental property will no longer be deductible (and also cannot form any part of the cost base). This will affect 2018 and future Income Tax Returns. 

The Government has been concerned that many taxpayers have been claiming this expense inappropriately. For example - a taxpayer claiming personal holiday expenses where they have a rental property in the holiday location, and not apportioning the claim between inspecting the property and personal expenditure.

Some real estate agents have offered to reimburse owners for their travel, and include the cost of the the travel in their Commission expenses on the annual summary. Obviously this is fraudulent, and easily picked up when comparing the current year agent fees with the prior year. 

Travel expenditure will still be deductible for those carrying on a business of renting (e.g. providing retirement living residences), and to some classes of entities. 

When preparing your 2018 Income Tax Return, we can help you get these claims right.