Who can claim
This deduction is available to individuals and companies.
- The cost relates to a property that is rented or genuinely available for rent.
- A body corporate charge is a regular administration levy or a regular contribution to a general-purpose sinking fund for ordinary running expenses.
What you cannot claim
- A special-purpose levy raised for major capital expenditure is not immediately deductible as a body corporate charge.
- Capital works may be claimable separately after the body corporate incurs the qualifying construction expenditure and the works are complete.
- Do not duplicate amounts already included in body corporate charges.
- Private use and non-rental periods require apportionment.
How the amount is worked out
Claim the deductible rental-income-producing portion of regular charges. Review a capital levy under the capital-works rules rather than claiming it immediately.
Records the ATO expects
- Rates and levy notices
- Body corporate budget and minutes identifying the levy purpose
- Insurance invoice
- Rental availability records
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 TR 97/25 capital works (TR 97/25)