Above: Elinor Kasapidis. Image – CPA Australia.
  • You can't claim on lost rental income due to rental moratoriums, Covid restrictions etc.
  • Some deductions like travel to rental property can no longer be claimed
  • Capital gains tax may apply to overseas property investments

With the end of the financial year only two days away, do you know how last year’s disruptions affect your tax returns?

Recently, The Property Tribune reported on how working from home can be claimed, with the 80 cents method still in place.

As for a short term rentals like Airbnb, information can be found here.

Can I claim on lost income?

Elinor Kasapidis, Senior Manager Tax Policy at CPA Australia, said lost rental income can not be claimed as a tax deduction.

“The good news is, if you reduced the rent to enable your tenants to stay in the property, this doesn’t reduce your deductions for rental property expenses.”

Elinor Kasapidis, Senior Manager Tax Policy, CPA Australia

What if I took it off the market?

If the rental property came off the market or you stayed at the property, Ms Kasapidis said you will “need to adjust [your] expenses and depreciation claims for the period it wasn’t available for rent.”

Landlords also need to remember that some changes to the tax system were made, including that, “for properties acquired from 9 May 2017, landlords can no longer depreciate assets that were in the property at the time of purchase.”

You cannot claim for travel deductions relating to inspecting, maintaining or collecting rent from the investment property either.

“From July 2019, many investors can no longer claim deductions for vacant land, including while constructing or substantially renovating residential premises. If your business use of the land was suspended due to COVID restrictions, you may still be able to claim a deduction if the land remained available for use during this period.” 

Capital gains tax

The hot property market also means those relishing the excellent sales prices will have to pay careful attention to capital gains tax.

“Be aware of the capital gains tax implications of selling your investment property. Ensure that you keep good records of your capital expenses to claim against any capital gain.”

Overseas property investments should also be declared, reminded Ms Kasapidis.

“The property market is also running red hot in other countries.

“If you sold property overseas, it’s likely you made a reportable capital gain.”

The Property Tribune also recently reported on tax time for cryptocurrency investors.


Before making any decisions, please do your own independent research, taking into account your own situation. This article does not purport to provide financial or investment advice. See our Terms of Use.

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