Who can claim
This deduction is available to individuals and companies.
- The cost is incurred for a property that is rented or genuinely available for rent.
- The cost is an ordinary income-producing operating cost, such as cleaning, gardening, lawn mowing, pest control, servicing, security, stationery, postage or an eligible property record cost.
- Where you incurred and paid an otherwise deductible expense, a later reimbursement from the tenant does not by itself deny the deduction; the reimbursement is rental income.
What you cannot claim
- Do not claim an expense paid directly by the tenant where you did not incur the cost.
- Private use, non-rental periods and capital improvements must be excluded or apportioned.
- Do not duplicate a cost already included in body corporate charges or another claimed category.
How the amount is worked out
Claim the eligible rental-income-producing expense you incurred. Include any tenant reimbursement or recoupment received as rental income.
Records the ATO expects
- Itemised invoices and payment evidence
- Tenant reimbursement and rental-income records
- Rental availability calendar
- Apportionment calculation where relevant
Where this rule comes from
Primary source: Income Tax Assessment Act 1997 section 8-1 (Section 8-1). Reviewed 30 July 2026. Covers the 2025-26 and 2026-27 income years.
Supporting sources:
- ATO Rental properties guide 2026 (Rental properties guide 2026)
- ATO rental income you must declare (Updated 23 June 2025)