Real estate income
This is lease or rent money you get from a property you own. It counts in your income test.
What goes into the income test
Your assessable income from real estate is the gross income you get from it, minus the deductions we allow.
Real estate other than your main home also counts in the assets test. Read about real estate assets and how they can affect payments from us.
You can’t claim the same deductions for this as you can claim in your tax return.
What you can claim
Costs you can deduct include:
- loan interest payments
- costs to maintain the property.
What you can’t claim
Costs you can’t deduct include:
- capital depreciation
- special building write off
- costs to build
- costs of borrowing money such as loan establishment fees.
Details we need
We’ll ask you for a profit and loss statement. This is normally your latest tax return.
If you make a loss from your rental property, we count that income as zero.
You can’t offset this loss against the income from:
- another property
- any other source of income.
Income from boarders and lodgers
This is where someone rents 1 or more rooms in your main home. Only part of what they pay you counts as income. The amount depends on whether any meals are included.
|What they pay for||How much counts as income|
|Lodging and breakfast||50%|
|Lodging and all meals||20%|
We may count less of this income in the income test if having the lodger costs you more than they paid you. You can show us these costs using your tax return.
You can also deduct either:
- the mortgage interest on your main home
- the rent you pay for your main home.
Page last updated: 19 August 2020
This information was printed 14 January 2021 from https://www.servicesaustralia.gov.au/individuals/topics/real-estate-income/28966. It may not include all of the relevant information on this topic. Please consider any relevant site notices at https://www.servicesaustralia.gov.au/individuals/site-notices when using this material.