Jump to content
House Price Crash Forum

Losses Arising On The Rental Of Property Located Outside Australia


Recommended Posts


It is all change from the 1st of July, 2008: losses arising on the rental of property located outside Australia can now be offset against Australian assessable income.

This means that taxpayers can effectively "negatively gear" in respect of property located outside Australia.

The change will be particularly good news to migrants from countries such as the UK who have been unable to sell their main residence due to the recent problems in the housing market. They can now plan to rent out their property and to claim a tax deduction for any losses they sustain, reducing their Australian tax bill as a result.

This change commences from the start of the current Australian tax year (the year starting on the 1st of July, 2008).

In addition, taxpayers who have sustained losses on rental property in the last 5 Australian tax years while resident in Australia and which have not yet been claimed as a deduction can contemplate claiming a tax deduction when completing their 2009 Australian Tax Return.

The same principle applies to losses arising on other passive sources of income outside Australia, including interest income, where borrowing and related expenses have been incurred in making the investment from which the interest income derives.

Edited by Panda
Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Recently Browsing   0 members

    No registered users viewing this page.

  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.