Rental property records: what the ATO expects landlords to keep
A rental property generates paperwork every month, from agent statements to council rates and a plumber's invoice, and some of it has to survive for decades. The receipts that matter most at tax time are often the ones filed least carefully: the loan documents, the depreciation schedule and the invoice for the new kitchen.
Here is what the ATO expects you to keep, and for how long.
Rental income
Keep a record of every amount you receive:
- statements from your property or managing agent;
- a rent book, or bank statements showing rent going into your account;
- documents showing any bond you kept in place of rent.
Rental expenses
For every expense you claim, keep the document that shows it:
- interest: bank statements showing the interest charged on the loan, plus the loan documents;
- council rates and land tax assessments;
- property agent fees, advertising and bank charges;
- gardening, repairs and maintenance invoices;
- documents for the decline in value of depreciating assets, such as appliances, carpets and blinds;
- documents for capital works, such as structural improvements, including before and after photos.
Repairs and improvements are treated very differently: a repair can generally be claimed in the year you incur it, while an improvement is capital works, claimed at 2.5% or 4% a year. See tracking renovation costs for how to tell them apart and what to keep.
Your loan: the record people lose track of
Interest is usually a landlord's biggest deduction, and it's only deductible to the extent the borrowed money was used for the rental. The ATO asks you to keep:
- loan documents and bank statements;
- details of any redraws, and what each one was for;
- documents about refinancing and any extra amounts added to the loan, showing whether they were for the rental or private use.
A redraw that paid for a holiday or a car turns part of the interest private, and without a record of what each redraw was for, the split is hard to show.
When you buy, own and sell
- Buying: the contract of purchase, conveyancing documents, loan documents, costs of buying the property and borrowing expenses.
- While you own it: tenant leases, documents showing periods of personal use by you or your friends, periods it was your main residence, refinancing documents, and receipts and before and after photos for capital improvements.
- Selling: the contract of sale, conveyancing documents, selling fees and your calculation of the capital gain or loss.
If you own more than one property, keep separate records for each, so the income and expenses land against the right one and each sale can be worked out on its own.
Format
Records can be paper or digital. Copies must be a true and clear copy of the original, and the ATO recommends keeping a back-up of digital records. See whether the ATO accepts photos of receipts.
Sources
Common questions
What records do I need for a rental property in Australia?
Records of the rent you receive, such as agent statements or bank statements; records of every expense you claim, such as interest statements, council rates, insurance, repairs and agent fees; loan documents; and documents for depreciation and capital works. Keep the purchase and sale documents too, because they decide the capital gain when you sell.
How long should I keep rental property records?
Five years, but from the latest of several dates: when you lodge the return, when you last claim decline in value on an asset, when it becomes certain no capital gains tax event can happen after you sell or dispose of the property, or when any dispute with the ATO is resolved. In practice, keep purchase and improvement records until at least five years after you sell.
Can I claim interest on a redraw from my rental loan?
Only the part used for the rental. The ATO asks landlords to keep details of redraws, refinancing and additional borrowing, and what the money was used for, because interest on amounts used privately isn't deductible.
Do I need records of when I used the property myself?
Yes. The ATO lists documents showing periods of personal use by you or your friends, and periods the property was your main residence, among the records to keep while you own it. They decide how much of your expenses you can claim.
Every figure on this page is checked against the ATO's own guidance and linked in the sources above. Last checked . Thresholds change each tax year, so if you are reading this well after that date, confirm the current figures before you rely on them. Terms.
Keep reading
How to track renovation costs, and which receipts the ATO needs
Keep every receipt for the job in one place, split mixed dockets, and separate repairs from improvements. What the ATO allows on a home and on a rental.
ReadHow long do you need to keep receipts for the ATO?
Five years — but from a date most people get wrong. What records to keep, what a valid receipt has to show, and when the clock actually starts.
ReadAre photos of receipts accepted by the ATO?
Yes — a photo or scan is valid written evidence if it's a true and clear copy. What that means in practice, and when you can bin the paper.
Read