Do I need to pay tax on rental income?

Yes, rental income is generally considered assessable income in Australia and must be reported on your tax return. The Australian Tax Office identifies rental income as any money you receive from tenants in exchange for providing the use of your property. This includes not only the rent paid by tenants but also any additional payments for services or utilities, and even bond payments treated as income in certain circumstances. It is important to keep accurate records of all rental income received. When reporting rental income, you can also deduct certain expenses related to the rental property, which can help lower your taxable income. Common deductions include cleaning, repairs, maintenance, property management fees, and interest on loans used to purchase the property. It is advisable to maintain thorough documentation of all income and expenses related to the property. For specific information regarding deductions and compliance, the Australian Tax Office's official website provides detailed guidance. It is advisable to consult this resource for official rulings and recommendations tailored to your individual circumstances.