The ATO has enforced strict guidelines on tax deductions for rental property owner’s travel expenses.
As a rental property owner you are not able to claim deductions for travel expenses relating to inspecting, maintaining or collecting rent. If you have already claimed a tax deduction for the cost of travel to and from your property in your 2018 return, you will need to request an amendment. The law change came into effect on 1 July 2017 and affects tax returns from 2017-18 onwards.
You may claim these travel expenses on your tax return if you are carrying on a rental property business or are an excluded entity.
An excluded entity is a:
- Corporate tax entity
- Superannuation plan that is not an SMSF
- Public unit trust
- Managed investment trust
- A unit trust or a partnership, all of the members of which are entities of a type listed above