Who can claim
This deduction is available to individuals and companies.
- The taxpayer is carrying on a business of property letting, is a corporate tax entity or another excluded class, or the travel relates to premises that are not residential premises.
- The travel has the required connection with earning rental or business income and any mixed purpose is apportioned.
What you cannot claim
- An ordinary individual investor cannot claim travel relating to inspecting, maintaining or collecting rent from a residential rental property.
- Merely owning several properties or being actively involved does not by itself establish a rental-property business.
- Private travel and any private part of a mixed trip are excluded.
How the amount is worked out
Claim only where the residential-rental travel restriction does not apply and the ordinary deduction rules are met. Apportion a mixed-purpose trip and do not add an amount solely because the property earns rent.
Records the ATO expects
- Travel diary and receipts
- Property-use evidence
- Rental-business or excluded-entity evidence
- Mixed-purpose apportionment
Before you rely on this rule
This item is deliberately review-only because the general rule denies most residential rental travel claims.
Where this rule comes from
Primary source: ATO LCR 2018/7 residential rental property travel expenses (LCR 2018/7). Reviewed 30 July 2026. Covers the 2025-26 and 2026-27 income years.
Supporting sources:
- ATO Rental properties guide 2026 (Rental properties guide 2026)