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ZoeF(Initiate)Initiate
6 Nov 2023

i have a rental property that I may eventually move in to. I’m wanting to know when can i do renovations on the house and claim it as rental deductible? Is there a timeframe of which the house needs to be rented after renovating before it stops being a rental property?

3,734 views
4 replies
3,734 views
4 replies

Most helpful response

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Bruce4Tax(Taxicorn)Taxicorn
7 Nov 2023

Renovations would more likely be capital works, and maybe some depn items.


Deductions would only be for repairs due to rental period.


ZoeF(Initiate)Initiate
7 Nov 2023

Thanks Bruce - are you able to expand on that?

say I wanted to renovate the kitchen - is there a time period after the works have been completed that I need to rent the property out?

Taxduck(Taxicorn)Taxicorn
7 Nov 2023

Usually when you are renovating you are making improvements to the structure of the dwelling. (i.e new bathroom, kitchen) These can only be depreciated at 2.5% per year (capital works). Any new fittings (i.e carpet, stove, heat pump) are capital allowances that are depreciated over their effective life. Repairs (such as painting) due to tenant damage or wear and tear can be claimed in the year that the property is earning income, so after a tenant moves out you can claim this expense before June 30.

Your rental property stops being a rental property once it is no longer rented or available for rent.

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Rental Property Claimable Period for renovations | ATO Community