rental

If you make more money then you spent this is a profit and this will be added to any other sources of income you have earned during the year. Remembering that this is income that has no taxed paid, so this needs to be accounted for. For example if your tax bracket is 39% then expect that around 39% of your profits will be taxed. If it makes a loss, it will do the opposite affect (this is called negative gearing), so it should in theory reduce tax bills or increase your refund.

It depends on a few factors, one which is whether the property was available for rent. 

What this means is, did you make reasonable attempts to advertise the property but were unable to tenant it?

Was the property ready to tenant and it was live-able? 

The ATO state for advertising:

Factors that may indicate a property is not genuinely available for rent include:

 it is advertised in ways that limit its exposure to potential tenants – for example, the property is only advertised

• at your workplace
• by word of mouth
• outside annual holiday periods when the likelihood of it being rented out is very low 
• at your workplace
• by word of mouth
• outside annual holiday periods when the likelihood of it being rented out is very low

If you did major repairs and not available for rent, such as rebuild a kitchen or bathroom this is capital in nature and cannot be claimed during the year. (Please see below capital). 

You can claim expenses relating to your rental property but only for  the period your property was rented or available for rent; for example,  advertised for rent.

Expenses could include:

• advertising for tenants
• bank charges
• body corporate fees and charges
• borrowing expenses
• capital works
• cleaning
• council rates
• decline in value of depreciating assets
• gardening and lawn mowing
• insurance – building, contents and public liability
• interest expenses
• land tax
• legal expenses (excluding acquisition costs and borrowing costs)
• pest control
• phone
• property agent fees and commissions
• repairs and maintenance
• stationery and postage
• water charges.

No. Expenses must be apportioned. 

Other examples when it should be apportioned.  

You'll need to apportion your expenses to determine the deductible amounts if:

• your property is available for rent for only part of the year
• only part of your property is used to earn rent
• you rent your property at lower than market value. 

 A rental property is said to be 'negatively geared' where the deductible  expenses (including interest on the loan borrowed to finance the  property) exceed the income earned from the property. 

More than likely yes. When selling any investment related property it must be declared in your tax return, regardless of whether it is a capital gain or loss.

Please seek advise prior to selling, due to possible exemptions to determine tax consequenses. 

Capital works are allowable deductions, but deductible over a period of time, not an instant tax deduction.

Deductions based on construction costs apply to capital works such as:

• buildings, or an extension; for example, adding a room, garage, patio or pergola
• alterations, such as removing or adding an internal wall, or
• structural improvements; for example, adding a gazebo, carport, sealed driveway, retaining wall or fence.

 You can only claim deductions for the period during the year that the property is rented or available for rent. 

 Expenses deductible over several years – borrowing expenses, decline in value (depreciation- this assets over the value of $300) and capital works.

Repairs and maintenance can be claimed in full provided for the following:

 * The property was available for rent or tenanted

 * The property was available for rent or tenanted not improvement. 

The ATO state:

When we say 'repairs', we mean work to make good or remedy defects in, damage to or deterioration of the property. 

Example:

• replacing part of the guttering or windows damaged in a storm
• replacing part of a fence damaged by a falling tree branch
• repairing electrical appliances or machinery.

When we say 'maintenance', we mean work to prevent deterioration or fix existing deterioration. For example:

• painting a rental property
• oiling, brushing or cleaning something that is otherwise in good working condition
• maintaining plumbing.

Improvements

You cannot claim a deduction for the total cost of improvements to your rental property in the year you incur them.

Capital improvements (such as remodelling a bathroom or adding a pergola) should be claimed as capital works deductions.

When we say 'improvement' we mean work that:

• provides something new
• generally furthers the income-producing ability or expected life of the property
• generally changes the character of the item you have improved
• goes beyond just restoring the efficient functioning of the property.

Yes.  Vacant land is usually considered a capital asset subject to capital gains tax (CGT).