Tax Deduction for HGRE Property Listed at Discounted Rental Rates

For HomeGround Real Estate landlords who have listed property at a discounted rental rate the Australian Tax Office has made a class ruling to claim the gap as a tax deduction at the end of financial year.

What is the ATO ruling?

The Australian Tax Office has made a class ruling that allows landlords who list their property with us at a discounted rental rate to claim the gap as a tax deduction at the end of financial year.

How does it work?

At the end of financial year HomeGround Real Estate will provide you with all of the documents you need to do your tax return – including a tax deductable donation receipt for the amount of rent you have deducted to provide a more affordable property to tenant/s.

For example, if your property is worth $550 at market rent and you decide to list at lower rental rate of $450. We will provide you with a donation receipt for $5200, this is made up of the $100 per week in rent you have foregone and you will receive a receipt Launch Housing (our parent organisation) with the total amount.

How does it benefit me?

The tax ruling is not designed as a financial incentive but it does recognise your contribution by allows you to claim the gap between market rent and any discount you decide to offer.

HomeGround Real Estate is a social enterprise of Launch Housing –one of Melbourne’s largest providers of housing support services to people experiencing or at risk of homelessness. Our mission is to end homelessness and our not-for-profit real estate agency is an innovative model assisting us in creating more affordable housing for Victorians.

For landlords choosing to list their property with us at market rate and only use our property management services. When you list your property with us the management fees go into supporting Launch Housing homelessness services.

    • If you choose to list your property at a discount of just 10% off the market rent you can make housing affordable for Victorians who are otherwise priced out of the market and at risk of homelessness.
    • Please contact your financial adviser or tax accountant for more detailed advice on how this ruling might apply to you and your financial situation. Here is a link to the ATO ruling online that your accountant/adviser can refer to https://www.ato.gov.au/law/view/pdf/pbr/cr2016-042.pdf