Travel deductions for rental properties removed
Deductions for travelling to a residential rental property will no longer be allowable for individuals after 1 July 2017.
This removal is for individuals travelling to collect rent, maintain the property or complete an inspection.
Announced in the 2017/18 Federal Budget, this removal allows only a short period before 30 June for taxpayers to obtain a final deduction before the change.
This measure will not prevent investors from engaging third parties such as real estate agents for property management services. This expenses will remain deductible.
Our firm would be please to discuss this matter with you further. Please do not hesitate to contact us if you have any concerns relating to your tax.
Norman Ruan
Accountant
T: 02 9984 7774
E: normanr@northadvisory.com.au
Martin van der Saag
Director
T: 02 9984 7774
E: martinv@northadvisory.com.au
“Deductions for travelling to a residential rental property will no longer be allowable for individuals after 1 July 2017.”
About the author
Marius Fourie - Director & Business Advisor
As Director and Business Advisor, Marius uses his accounting expertise and empathetic skills to work directly with business owners and help them feel at ease with their finances.
Marius saw a common need in clients that just wasn’t being met by accounting providers.
That need was for clear, open communication and streamlined accounting services that didn’t come padded out with any unnecessary features.
Business owners just don’t have time to compare different accounting firms to see which one has the best packages with the best inclusions (many of which they would pay for but never use).
Key Takeaways
Travel deductions for visitation, inspection or maintenance of rental properties were abolished from 1 July 2017.
Individual investors can no longer claim those costs on their tax returns
The change was included in the 2017/18 Federal Budget and applied from the beginning of that financial year.
Taxpayers had only a short period before 30 June 2017 to claim final travel deductions.
This reform reflects tighter criteria on work-related and investment-related travel deductions.
It aligns with broader ATO efforts to curb deductions not directly tied to generating assessable income.
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Frequently Asked Questions
What travel deductions were removed for rental properties?
From 1 July 2017, individuals can no longer claim travel costs incurred in relation to residential rental properties — including trips to collect rent, inspect the property or undertake maintenance.
Who does this change apply to?
The change applies to individual property investors — that is, natural persons claiming deductions on their personal tax returns for rental property-related travel.
Does this affect all types of rental properties?
Yes — the removal of travel deductions applies to travel related to residential rental properties; it does not differentiate by location or how often the property is visited.
Can I still claim travel costs if I hire a property manager or agent?
Yes — while personal travel deductions are removed, fees paid to third parties such as real estate agents or property managers remain deductible.
When was this change first announced?
The travel deduction removal was announced in the 2017/18 Federal Budget, giving individuals a short window before 30 June 2017 to claim any final allowable travel expenses.
Could landlords still claim these travel deductions before the change?
Yes — the article notes there was only a short period before 30 June 2017 to claim a final deduction before the rule changed.
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