UK rental income / Australian Tax Return

[SaffanZimbo]

We rent out our UK house through an estate agent but do not have any UK tax liability as the income is below the UK tax threshold.

 

Do we need to disclose this rental income on our Australian Tax Return and if so can we deduct the full mortgage payments? The rent covers our mortgage and insurances (just!) so not sure how we would find the cash if we have to pay tax in Australia on the rental income (less only mortgage interest and expenses) quite worried:confused:

[Walkabout]

Hi, yes you do need to disclose this information with your Aus tax return. My understanding is that you can only claim the interest on the mortgage payment and not the whole payment, BUT you can also offset your agents fees, council tax, and any repairs / maintenance etc that you have undertaken during the Australian Tax year. But I'm not a Tax advisor or accountant and we have always had one prepare our statements for us to ensure that it was right. Whilst I have no doubt that it is absolutely possible to do it yourselves, it may be worth getting advice from a professional to ensure that you have claimed/ not claimed all the right bits especially if this is your first return. Good luck!

[Rossmoyne]

Absolutely no idea @SaffanZimbo.... guess you need to consult a taxation accountant. Be interesting to know how you go with this though as information for others in your situation.

[Alan Collett]

Yes, the UK rental income - and expenses - are to be included on your Australian tax returns.

 

Don't overlook the possibility of claiming depreciation too:

http://www.gmtax.com.au/depreciation-rental-property-tax-deduction-on-australian-tax-returns/

 

If you can generate a tax loss you will be able to offset this against your other taxable income in Australia - ie you can "negatively gear."

 

Maybe have a chat with Jane Cooper on 08 9261 7762.

 

Best regards.