Tax Ruling Information for Landlords

What is the ATO ruling?

The Australian Tax Office has made a class ruling (pdf) 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 the documents you need to do a tax return – including a donation receipt for the amount of rent deducted to provide a more affordable property.

For example, if your property is worth $550 at market rent and you decide to list at a 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 from 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 and 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 and specialist homelessness services. Launch Housing’s mission is to end homelessness and the not-for-profit real estate agency is an innovative model creating more affordable housing for Victorians.

If you choose to list your property at a discount of 10% off the market rent, you can make housing affordable for Victorians who are priced out of the market and at risk of homelessness.

Please contact your financial adviser or tax accountant for more advice on how this ruling might apply to you and your financial situation. Find out more about the ATO ruling (pdf).