🏡 Completing Your Rental Property Schedule

This article is based on information available from the Australian Taxation Office as of May 2025. For personalized advice, please consult with a tax professional.

The Australian Taxation Office (ATO) is sharpening its focus on rental property compliance for the 2024–25 financial year. With nearly 9 in 10 landlords making errors on their tax returns, the ATO is now providing more detailed expectations on how landlords should report rental income, deductions, and ownership particulars.

To help you stay ahead of the curve—and audit-ready—we’ve broken down what the ATO expects you to report this year, how deductions work, and what you need to avoid.

If you own a rental property, preparing for your tax return can feel daunting. The ATO requires detailed information on your rental income and expenses – but with the right guidance, it's straightforward. In this blog, we'll walk you through a typical rental property schedule, explain each field in plain English, and help you get tax-time ready with confidence.

Rental Schedule Sample.xlsx

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📋 Basic Property Details

The ATO now requires more transparency around your rental property’s profile. Be ready to provide:

• Acquisition Date: The exact date you purchased the property.

• Acquisition Price: The full cost including stamp duty, legal fees, and purchase-related expenses.

• Date Property First Earned Rental Income: This determines eligibility for certain deductions like depreciation.

• % of Ownership: Your legal ownership share—e.g., 50% if jointly owned.

• Weeks Rented & Available: Report both how many weeks the property was actually rented and how many weeks it was listed and available to rent. This is used to calculate deductible amounts proportionately.

💰 Income Section

Declare all forms of income associated with the property:

• Gross Rent Received: The total amount tenants paid before expenses.

• Other Rental-Related Income: This includes insurance payouts, booking fees (for short-term rentals), and any retained bond money used for repairs or unpaid rent.

❗ Note: Not declaring additional rental-related income is a red flag for audit.

📉 Expenses Section

Only genuine income-producing expenses are deductible. These include:

Expense Category	What You Can Claim
Advertising for Tenants	Costs for newspaper ads or online listings (e.g., realestate.com.au)
Body Corporate Fees	Strata fees (excluding capital works)
Council Rates & Water	Payable local government charges
Depreciation	As per your quantity surveyor’s depreciation schedule
Insurance	Building, landlord, contents insurance
Interest on Loan	Only the interest portion—not the principal
Land Tax	State-based tax on the land value
Legal Fees	Related to evictions or tenant disputes only
Letting Fees	Paid to agents for securing new tenants
Pest Control	Treatment and inspections
Property Agent Fees	Ongoing management and admin fees
Repairs & Maintenance	Restoring items to original condition (not upgrades)
Sundry	Bank fees, phone calls, minor incidental expenses

🚫 Not deductible: Travel to inspect your property (since 1 July 2017), personal use costs, or expenses related to improvements or renovations.

Common Mistakes the ATO Is Targeting

• ❌ Claiming interest on refinanced personal loans

• ❌ Failing to apportion expenses for private use or unleased periods

• ❌ Declaring repairs as expenses when they are actually capital improvements

• ❌ Reporting 100% deductions despite owning only a portion of the property

Final Tips:

Keep all records for 5 years—receipts, loan documents, lease agreements, and agent invoices

Co-owners must report separately—each declares their share of income and expenses

Use a tax agent or accountant familiar with the ATO’s rental schedule requirements

Consider a depreciation schedule from a quantity surveyor to maximise long-term deductions

At Lynden Group, we specialise in supporting property investors with ATO-compliant reporting, recordkeeping, and strategic tax advice. Whether you own a single investment property or a multi-site portfolio, our team ensures your rental income and deductions are optimised and audit-ready.

👉 Reach out today for a personalised consultation or to book a review of your rental property schedule.

Sources: Australian Taxation Office (ATO) – Rental properties 2024 guide