The Australian Taxation Office has produced a publication titled Rental Properties 2006, which helps owners of rental properties in Australia to determine:

• What rental income is assessable for tax purposes;
• What expenses are allowable deductions;
• What records you need to keep; and
• What you need to know when you sell your rental property.

Many of the expenses associated with your rental property will be deductible. The publication explains:

• How to apportion your expenses if only part of them are tax deductible;
• What expenses are not tax deductible; and
• When you can claim those expenses that are deductible - some you can claim in the year they occur, others must be claimed over a number of years (including decline in value of depreciating assets and capital works expenses).