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Foz(Newbie)Newbie
29 May 2024

Recently I had some fire damage to the house I am renting due to a thermal runaway on one of my LiPo batteries. After some discussions with the property manager and the manufacturer of the battery, the property manager has sent me a $2000 invoice for the excess on insurance.


From what I have read, this is a tax deductible thing for the landlord, however I haven't been able to find any information on whether this is tax deductible for myself. If it isn't, then why should I pay the excess for him.


Would appreciate any answers or ideas.

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1,223 views
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Most helpful reply

Taxduck(Taxicorn)Taxicorn
29 May 2024

This question fundamentally has nothing to do with tax. It is whether tenants are liable for accidental damage to the property they are renting. Tenants can be held liable for accidental damage. Laws differ from state to state. In NSW for example: " tenants are responsible for “damage to the property, either intentionally or through lack of care or attention.” 

There is probably something in your lease about liability for accidental damage.

It is certainly not tax deductible for you as this is a private expense and not related to the earning of taxable income.

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Most helpful reply

Taxduck(Taxicorn)Taxicorn
29 May 2024

This question fundamentally has nothing to do with tax. It is whether tenants are liable for accidental damage to the property they are renting. Tenants can be held liable for accidental damage. Laws differ from state to state. In NSW for example: " tenants are responsible for “damage to the property, either intentionally or through lack of care or attention.” 

There is probably something in your lease about liability for accidental damage.

It is certainly not tax deductible for you as this is a private expense and not related to the earning of taxable income.

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My landlord has sent me an invoice for his insurance excess, is this tax deductible? | ATO Community