Who can claim
This deduction is available to individuals and companies.
- The work remedies wear, damage or deterioration in an existing income-producing asset.
- Replacing a subsidiary part can be a repair where the work does not replace or reconstruct the relevant entirety and does not materially improve it.
What you cannot claim
- Replacement or reconstruction of the relevant entirety is capital, even if the new item performs the same function.
- Initial repairs, improvements and structural alterations are generally capital and may be treated as capital works or cost-base items.
- Private or non-rental use must be excluded.
How the amount is worked out
Claim the deductible repair portion. Separate any improvement, initial-repair or relevant-entirety replacement for capital treatment.
Records the ATO expects
- Itemised invoice
- Before-and-after description
- Evidence identifying the asset and subsidiary part repaired
- Rental availability records
Where this rule comes from
Primary source: ATO TR 97/23 repairs (TR 97/23). Reviewed 30 July 2026. Covers the 2025-26 and 2026-27 income years.