Residential Rental Property Travel Expenses

From 1 July 2017, travel expenses relating to residential investment property are not deductible.

Under the new legislation, you are no longer able to claim any deductions for the cost of travel you incur relating to a residential rental property unless you are carrying on a business of property investing or are an excluded entity.  This includes travel to collect rent, maintain the property, complete inspections, attend body corporate meetings, and all associated expenses for taxi, hire car costs, airfares, public transport costs, and meals or accommodation.

In the Business of Property Investing

Generally, owning one or several rental properties will not be considered being in the business of rental properties.
The receipt of income by an individual from the letting of a property to a tenant, or multiple tenants, will not typically amount to the carrying on of a business as such activities are generally considered a form of investment rather than a business.

Excluded Entities Include: 

  • Corporate tax rate entity

  • Superannuation plan that is a not a SMSF

  • Public Unit Trust

  • Managed Investment Trust

  • Unit Trust or a Partnership, all of the members of which are entities of a type listed above.