New Rules for Reporting Income Tax on Rental Properties

From the 2019-20 income year, you can only claim deductions on the amount of income you earn from your rental property. All deductions must be ring-fenced, meaning any excess deductions (or losses) will be carried forward and added to other property deductions in a later income year. You cannot use excess deductions from your residential property to reduce your other income, such as salary and wages or business income, which would result in a reduced tax liability.

• The new ring-fencing rules apply to all residential land (including overseas based properties) unless it falls under one of the exemptions, such as if the property is your main home

For more information on the changes affecting rental properties click here