myIR, payments and more
If you're renting out a property then you'll have tax to pay on the rental income you earn. This rental income could be from renting out land, buildings, a holiday home, or a room in your own home.
Watch our short video about receiving rental income.
Flash video | 2:05 mins
New Bright-line test
The bright-line test only applies to residential properties bought on or after 1 October 2015. Under this rule you'll pay tax on income you earn if you buy and sell a property within two years, unless you're selling your family (main) home or another exclusion applies.
All existing property tax rules still apply.
Things you need to know
- Rental income has to be taxed in the same year that you receive it.
- There are some expenses related to maintaining and renting out your property that you can claim for.
- There is no GST on residential rental property. However, if you own an investment apartment with a management or service agreement in place, there may be GST implications to consider.
- If you switch between renting out property and property dealing, you may be liable for tax when you sell.