## What is foreign and worldwide income?

As an [Australian resident for tax purposes](https://www.ato.gov.au/individuals-and-families/coming-to-australia-or-going-overseas/your-tax-residency/australian-resident-for-tax-purposes), you must declare income you earn anywhere in the world in your Australian tax return. This is known as your worldwide income. It includes any foreign income you may receive from:

- [superannuation pensions and annuities](https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/income-you-must-declare/superannuation-pensions-and-annuities)
- [business activities](https://www.ato.gov.au/businesses-and-organisations/international-tax-for-business/australians-doing-business-overseas/foreign-business-income)
- [employment and personal services](https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/income-you-must-declare/foreign-and-worldwide-income/australian-resident-foreign-and-worldwide-income#Incomefromemploymentandpersonalservices)
- [assets and investments](https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/income-you-must-declare/foreign-and-worldwide-income/australian-resident-foreign-and-worldwide-income#incomefromassetsandinvestments)
- [capital gains on overseas assets](https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/income-you-must-declare/foreign-and-worldwide-income/australian-resident-foreign-and-worldwide-income#capitalgainsonoverseasassets).

If you have interests or involvement in foreign entities or foreign trusts, you may have [attributed foreign income](https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/income-you-must-declare/foreign-and-worldwide-income/australian-resident-foreign-and-worldwide-income/attributed-foreign-income). This is income attributed to you that has not been distributed.

### Income from employment and personal services

If you have worked overseas or provided services to an organisation located outside Australia, you need to declare relevant income as if it were earned in Australia. This may include:

- salary and wages
- directors' fees
- consultancy fees
- business income
- any other remuneration.

This income may also include payments received from platforms hosted overseas – for example, if you are a content creator or influencer, and your payment is from overseas.

### Income from assets and investments

If you own assets or investments overseas, including offshore bank accounts, you need to declare the relevant returns as if they were in Australia. This may include:

- interest from bank deposits or bonds
- dividends from shares
- royalties from intellectual property
- rental income from real estate
- pensions, annuities and lump sums from managed funds
- income streams from super funds
- attributed income from foreign entities
- some government pensions.

### Capital gains on overseas assets

If you own an asset overseas, you may have to pay Australian [capital gains tax](https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax) when you sell the asset. You need to keep appropriate records.

If you acquired an overseas asset before you became an Australian resident, you treat the asset as though you acquired it when you became an Australian resident.

Similarly, if you stop being an Australian resident while holding an overseas asset, you treat the asset as though you disposed of it when you stopped being an Australian resident.

To accurately calculate your capital gain or loss, ensure you keep a record of the value of your asset at these times. This is a complex area of tax law and you may be eligible for exemptions.

## Paying Australian tax on your foreign and worldwide income

If you're an Australian resident for tax purposes and you:

- have a temporary resident visa

- you don’t pay tax on most of your foreign income in Australia
- we tax your income from some actual work you do overseas while you are a temporary Australian resident
- receive foreign income

- receive income from a [country that has a tax treaty](https://www.ato.gov.au/about-ato/international-tax-agreements/in-detail/what-are-tax-treaties) with Australia

If you are an Australian Government agency employee (and not a member of a disciplined force), you now pay tax on income from delivering [Australian Official development assistance (ODA)](https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/income-you-must-declare/foreign-and-worldwide-income/tax-exempt-income-from-foreign-employment/exempt-income-from-foreign-service). Members of a disciplined force delivering ODA may still be eligible for exemption.

## Tax paid overseas

If you have already paid tax in the country where you derived the income, you may be able to claim an [Australian foreign income tax offset](https://www.ato.gov.au/forms-and-instructions/foreign-income-tax-offset-rules-guide-2025).

To be eligible for a foreign income tax offset, you must:

The foreign country must have taxing rights over the income. If they do not, you can ask them for a refund of the tax paid.

The offset amount you are entitled to will not always be the same as the tax you paid overseas. If you are claiming more than $1,000, you will first need to work out your foreign income tax offset limit to determine your entitlement.

## Tax exemptions for international employment income

Employment income from international work may be exempt from Australian tax in limited circumstances, such as:

For more information about these situations, and the conditions you must meet, see [Tax exempt income from foreign employment](https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/income-you-must-declare/foreign-and-worldwide-income/tax-exempt-income-from-foreign-employment).

## Converting foreign income to Australian dollars

You must convert all foreign income, deductions and tax offsets to Australian dollars in your tax return.

[Foreign income conversion calculator](https://www.ato.gov.au/calculators-and-tools/income-foreign-income-conversion-calculator)
Depending on your circumstances and the type of income, you can use either:

## Apportioning foreign income across multiple years

Unlike Australia, most countries do not have an income year ending on 30 June. You may need to report your foreign income and associated tax offsets in multiple tax returns in Australia.

You will need to work out which income tax years the income amounts align to and apportion them accordingly.

## Audit and verification checks

We do audit and verification checks and we [data match](https://www.ato.gov.au/about-ato/commitments-and-reporting/information-and-privacy/data-and-analytics/data-matching) the tax information provided in tax returns with data we collect from other parties, such as:

We recommend you ensure your bank has correctly recorded all your details, such as your name, address and tax file number. This will avoid any unnecessary follow-up action being taken by Australia or another country if a discrepancy is found.

We receive and exchange financial account information with participating foreign tax authorities. This ensures Australian residents with financial accounts in other countries are complying with Australian tax law. You could receive penalties and interest charges if you do not declare your foreign income.

- you can provide a [certificate of residency and overseas tax relief form](https://www.ato.gov.au/individuals-and-families/coming-to-australia-or-going-overseas/certificate-of-residency-and-overseas-tax-relief-form) to the tax authorities in that country and ask them to either

- reduce their withholding tax
- exempt you from paying tax in that country if they do not have taxing rights over the income.
- have paid the tax on the income overseas
- have records to prove that the tax has been paid.
- certain types of foreign service
- working on an approved overseas project
- working in Australia for certain international organisations
- overseas deployment with an Australian Defence Force
- working for an Australia–United States joint space or defence project.
- the exchange rates prevailing at specific times – there are specific [Translation (conversion) rules](https://www.ato.gov.au/businesses-and-organisations/corporate-tax-measures-and-assurance/foreign-exchange-gains-and-losses/translation-conversion-rules) that tell you the exchange rate to use
- an [average exchange rate](https://www.ato.gov.au/tax-rates-and-codes/foreign-exchange-rates-overview) – daily and monthly rates published monthly.
- banks
- financial institutions
- investment bodies
- employers
- other government agencies.


## Your income and the tax-free threshold

Your income may come from one or more payers at the same time. Payers include employers, government agencies, or work you do as a sole trader.

You can choose to claim or not claim the [tax-free threshold](https://www.ato.gov.au/individuals-and-families/jobs-and-employment-types/tax-free-threshold/how-to-claim-the-tax-free-threshold) ($18,200) on the income you earn.

If you claim the tax-free threshold:

- you won't pay tax where your income is $18,200 or less.
- your payer will withhold tax when you earn above $363 per week, $726 per fortnight or $1,573 per month.

## When to claim the tax-free threshold

If you have more than one payer at the same time, generally, you only claim the tax-free threshold from one payer. Usually, you claim the tax-free threshold from the payer who pays you the highest salary or wage.

You may receive your income from 2 or more payers at the same time, if you:

- have a second job or more than 2 jobs
- have a regular part time job and also receive a taxable pension or government allowance
- are working under an ABN as a contractor, sole trader or other business structure.

## Second job or payer

Where you have more than one payer and expect to earn above $18,200 from all sources, you should advise your other payers to withhold tax from your income at a higher rate. This is the 'no tax-free threshold' rate.

You may need to complete and lodge a [PAYG withholding variation application](https://www.ato.gov.au/forms-and-instructions/payg-withholding-variation-application). Your request should be in writing but you can send it as an email request, a paper or online form.

Doing this reduces the chance of you having a tax debt (tax bill) at the end of the income year. See, [Why you may receive a tax bill](https://www.ato.gov.au/individuals-and-families/your-tax-return/your-notice-of-assessment/why-you-may-receive-a-tax-bill).

## Change of job during the income year

If you change jobs during the income year your previous employer stops paying you, and this means you will no longer claim the tax-free threshold from them. You can claim the tax-free threshold from your new payer even if you have claimed it from your previous employer.

To choose whether to claim the tax-free threshold from your new employer complete a tax file number (TFN) declaration. Your payer will work out how much tax to withhold from their payments to you.

We will work out your total tax payable at the end of the income year when you lodge your tax return.

### Example: changing jobs

Hamid has just completed his university degree and has found a job as a graduate in the public service. During December and January Hamid keeps working at his part time job in a café until he starts in a graduate position in February.

He has claimed the tax-free threshold from his café job from July to January. When he quits his café job and starts his graduate position he claims the tax-free threshold from his new employer from February.

End of example## Tax withheld from all income sources

When you lodge your tax return, we assess all the income you earn and the tax withheld amount. Sometimes the total tax withheld may be more or less than the amount you need to meet your end-of-year tax liability, if:

- [your income is $18,200 or less](https://www.ato.gov.au/individuals-and-families/jobs-and-employment-types/tax-free-threshold/multiple-jobs-or-change-of-job#Ifyourincomeis18200orless), you can claim the tax-free threshold
- [too much tax is withheld](https://www.ato.gov.au/individuals-and-families/jobs-and-employment-types/tax-free-threshold/multiple-jobs-or-change-of-job#Ifyourincomeisover18200andtoomuchiswithh), it may result in a tax refund
- [too little tax is withheld](https://www.ato.gov.au/individuals-and-families/jobs-and-employment-types/tax-free-threshold/multiple-jobs-or-change-of-job#Iftoolittletaxiswithheld), you may receive a tax bill to pay the difference.

Depending on your circumstances, you can request a change to the amounts of tax withheld from your income. This will help you to match your end-of-year tax liability more closely.

### If your income is $18,200 or less

If you're certain your total income for the income year from all your payers will be $18,200 or less, you can choose to claim the tax-free threshold from each payer.

If you do this and your total income later increases to above $18,200, you'll need to provide one of your employers with a [withholding declaration](https://www.ato.gov.au/forms-and-instructions/withholding-declaration). The withholding declaration will advise them you want to stop claiming the tax-free threshold from that payer.

#### Example: income of $18,200 or less

During the 2024–25 income year Jeff has a:

- taxable pension of $384.61 per fortnight ($10,000 for the income year)
- part-time job earning $307.69 per fortnight ($8,000 for the year).

Jeff claims the tax-free threshold on his pension and no tax is withheld during the year.

If Jeff doesn't claim the tax-free threshold through his employer for his part-time job, $50 per fortnight would be withheld.

Assuming that Jeff doesn't have other income, his taxable income for the income year will be $18,000. His tax payable at the end of the income year would be nil ($0). He would receive a refund of the total tax withheld when he lodges his 2025 tax return.

If Jeff expects to receive the same income for the next income year, he could choose to claim the tax-free threshold for his part-time job as well through his employer, so that no tax is withheld from payments made to him. He can do this by completing a withholding declaration and providing it to his employer.

End of example### If too much tax is withheld

If your income is more than $18,200 and too much tax was withheld in the income year, you can apply to reduce the amount of tax withheld from your payments.

You will need to complete and lodge a [PAYG withholding variation application](https://www.ato.gov.au/forms-and-instructions/payg-withholding-variation-application). Your request should be in writing but you can send it as an email request, a paper or online form.

When we receive your application, we'll calculate the variation amount and provide your payers with new instructions for withholding your tax.

You should only apply for this variation if you're certain of your income amounts and are disadvantaged by the current withholding rates.

#### Example: too much tax withheld during the year

Sue has 2 jobs during the 2024–25 income year. As a part-time retail sales assistant, she earns $615.38 per fortnight ($16,000 for the income year). She also works in a restaurant earning on average $384.62 per fortnight ($10,000 for the income year).

Sue claims the tax-free threshold from her retail employer and has no tax withheld.

As Sue doesn't claim the tax-free threshold from her restaurant employer, $66 per fortnight is being withheld. In total $1,716 was withheld for the income year.

Since Sue doesn't have any other income, her tax payable or refundable when she lodges her tax return would be calculated as follows:

Taxable income

$26,000

Income tax payable on $26,000

$1,248

Less, Low income tax offset

$700

Plus, Medicare levy

$0

**Total tax and Medicare levy**

**$548**

Credit for total tax withheld

$1,716

**Tax refund due to Sue**

**$1,168**

The tax refund of $1,168 arises because too much tax was withheld from Sue's income from her employers during the income year.

If this situation is likely to continue, Sue can apply to us for a withholding variation to reduce the amounts of tax withheld. So, Sue will receive extra net pay during the income year, rather than receiving a large tax refund at the end of the income year.

End of example### If too little tax is withheld

Sometimes the total tax withheld from your payments may be too little to cover your tax liability for the income year.

To avoid an end-of-year tax debt, you can ask one or more of your payers to [increase the amount they withhold](https://www.ato.gov.au/individuals-and-families/jobs-and-employment-types/varying-your-payg-withholding) from your payments. You will need to complete and lodge a [PAYG withholding variation application](https://www.ato.gov.au/forms-and-instructions/payg-withholding-variation-application). Your request should be in writing but you can send it as an email request, a paper or online form.

#### Example: too little tax withheld

Pierre receives a taxable pension and has a part-time job. Over the course of the 2024–25 income year, he receives:

- $30,000 from the pension – Pierre's payer applies the tax-free threshold to his fortnightly payments
- $30,000 from the part-time job – Pierre's employer applies no tax-free threshold to his fortnightly payments.

Pierre's tax withheld is:Income type

Taxable annual income

Fortnightly income

Fortnightly tax withheld

Pension

$30,000

$1,153.84

$84.00

Part-time job

$30,000

$1,153.84

$236.00

Total

$60,000

$2,307.68

**$320.00**

At the end of the income year, the total tax withheld from Pierre's income will be $8,320 ($320 × 26).

When Pierre lodges his tax return for the income year, the actual amount of income tax he has to pay, or tax refundable to him, will be calculated as follows:

Taxable income

$60,000

Income tax payable on $60,000

$8,788

Less, Low income tax offset

$100

Plus, Medicare levy (2% of $60,000)

$1,200

**Total tax and Medicare levy**

**$9,888**

Credit for total tax withheld

$8,320

**Tax payable**

**$1,568**

Pierre will have a tax debt of $1,568 as insufficient tax was withheld during the income year.

Pierre can ask one or both of his payers to withhold extra tax to cover the shortfall. Alternatively, he can put money aside to ensure that he can pay his tax bill when it falls due.


## When you can access your super

There are limited circumstances where you can access your super on compassionate grounds to meet expenses for you or your dependant.

Under the law, we have no discretion to vary the conditions under which you can access your super early.

You may be able to have super released on compassionate grounds to meet expenses for:

- medical treatment for you or your dependant
- medical transport for you or your dependant
- modifying your home or vehicle to accommodate special needs arising from your or your dependant's severe disability
- palliative care for you or your dependant's terminal illness
- death, funeral or burial expenses for your dependant
- preventing foreclosure or forced sale of your home.

For more information, see [Expenses eligible for release on compassionate grounds](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/withdrawing-and-using-your-super/early-access-to-super/access-on-compassionate-grounds/expenses-eligible-for-release-on-compassionate-grounds).

Applications for the compassionate release of super generally need to be for an unpaid expense, however, if you have borrowed money to pay for the expense, you may be able to access your super to repay the outstanding balance of the borrowed amount.

These circumstances **don't include** meeting general day-to-day expenses in hardship situations. In these situations, you may be able to [access your super early](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/withdrawing-and-using-your-super/early-access-to-super/when-you-can-access-your-super-early), but there are different rules, and you apply directly to your super fund.

When you apply, ensure you attach all the required evidence so your application can be assessed as quickly as possible. Applications that are not accompanied by all the required documentary evidence may be delayed or not approved.

As your application may not be approved, we recommend you wait for the outcome and receive payment from your fund **before** you book the treatment or services you have applied for.

## Things to consider

Accessing your super early will reduce your super balance. This may affect your:

- future retirement income
- income protection insurance
- life and total and permanent disability insurance cover
- family tax benefit
- child support payments.

Make sure you understand your options and the financial impacts of accessing your super before applying. Consider getting financial advice.

You can start with these free services:

- [Centrelink's Financial Information ServiceExternal Link](https://www.servicesaustralia.gov.au/individuals/services/financial-information-service) can inform and educate you about financial matters.
- [ASIC's MoneysmartExternal Link](https://moneysmart.gov.au/financial-advice/financial-advisers-register) has helpful information about seeking financial advice.

## How tax applies

The super you withdraw on compassionate grounds is paid and taxed as a normal super lump sum. For more information, see [Tax on super benefits](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/withdrawing-and-using-your-super/early-access-to-super/tax-on-super-benefits).

The tax rate depends on various factors, including your age, your preservation age, and the components of the super lump sum.

Super that is released early will generally count towards your assessable income for income tax purposes. You need to include any taxable amounts in your tax return.

### Refund of tax withheld

You may be able to request a refund of any tax withheld from your super lump sum payment if you had a terminal medical condition either:

- at the time of the payment
- within 90 days of receiving the payment.

For information about how to request a refund and the documents you need to provide, see [Refund of tax paid on super](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/withdrawing-and-using-your-super/early-access-to-super/access-due-to-a-terminal-medical-condition#ato-Refundoftaxpaidonsuper).

## What you need to do before applying for early release

Before you apply for early release of super on compassionate grounds, work through these steps to check what you need to do if you:

- are seeking to access your super to pay for an expense for yourself, you'll need to [find out if you are eligible for compassionate release of super](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/withdrawing-and-using-your-super/early-access-to-super/access-on-compassionate-grounds/access-on-compassionate-grounds-what-you-need-to-know#Eligibilityforcompassionatereleaseofsupe)
- are [applying to pay for someone else's expenses](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/withdrawing-and-using-your-super/early-access-to-super/access-on-compassionate-grounds/access-on-compassionate-grounds-what-you-need-to-know#Accessingsupertopayexpensesforsomeoneels), there are additional eligibility requirements
- meet the eligibility requirements you'll then need to understand what [evidence you need to provide](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/withdrawing-and-using-your-super/early-access-to-super/access-on-compassionate-grounds/access-on-compassionate-grounds-what-you-need-to-know#Evidencerequirements).

### Contact your super fund

Before applying to us for compassionate release of your super, you must contact your super fund to:

- confirm they will release your super early on compassionate grounds
- confirm there is sufficient money in your account to cover both the expense and the tax withholding amount (which generally is up to 32% of the amount being withdrawn)
- check if there will be any fees for releasing your super early under compassionate grounds
- understand the implications on any insurance attached to your accounts.

If you're a member of an **exempt public sector super scheme**, don't apply to us unless your scheme has directed you to. In most cases, you'll need to apply directly to your scheme for early release of super. These schemes are subject to state and territory laws on early release of super.

If you have a **self-managed super fund (SMSF)**, you still need our approval to access your super early under compassionate release of super. Be aware that some advisers claim you can get early access to your super by transferring it into a SMSF. These schemes are illegal and there are heavy penalties if you participate. For more information, see [Illegal early access to super](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/withdrawing-and-using-your-super/early-access-to-super/illegal-early-access-to-super).

## Eligibility for compassionate release of super

We can only approve a release of your super if you meet all the following conditions:

- Condition 1 – you are or have been a citizen or permanent resident of Australia or New Zealand.

- If you are currently a temporary resident, you can't meet this condition and you're **not** eligible to apply - for more information see [temporary residents and superannuation](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/temporary-residents-and-superannuation).
- If you were a temporary resident and are not a current Australian or New Zealand citizen or permanent resident, you can't meet this condition and you're **not** eligible to apply. You may be eligible to be paid your super in the form of a [Departing Australia superannuation payment](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/temporary-residents-and-superannuation/departing-australia-superannuation-payment-dasp).
- Condition 2 – you meet the eligibility requirements of the specific compassionate grounds that you’re applying for.
- Condition 3 – you or your dependants' expense is unpaid or has been paid as a result of you borrowing money that remains outstanding – where you or your dependant have borrowed money to pay the expense

- You can only apply to repay any outstanding amounts from the amount borrowed.
- Additional documents will need to be provided as part of your application.
- Condition 4 – you can’t afford to pay part or all the expense without accessing your super. That is, you can't pay the expense by

- using your savings
- redrawing your mortgage
- selling shares, investments or assets
- accessing funding through other means (such as the National Disability Insurance Scheme)
- borrowing money, obtaining a loan or using credit facilities - noting that if you then are unable to repay the borrowed amount, you may still be eligible to apply.
- Condition 5 – you provide all required supporting evidence and invoices or quotes, including any documentary evidence required to show you're in a dependant relationship with someone when you're applying to pay an expense for them.

## Accessing super to pay expenses for someone else

If you're seeking to access your super to pay an expense for another person, you must have a dependent relationship with that person.

If your relationship meets the requirements of an Interdependent relationship or substantially financially dependent relationship, you need to provide evidence of the relationship.

### Who is a dependant

A person can be considered your dependant if they meet the criteria for one of the following categories:

- your spouse
- your child
- any other person you are in an interdependent relationship with
- a person who is substantially financially dependent on you.

Read the following information to determine if your relationship meets the relevant criteria and to understand the additional evidence you need to provide.

Applications submitted with incomplete evidence will be delayed or not approved.

#### Spouse

We define a spouse as someone who is either:

- legally married to you
- a person who is recognised as being in a registered relationship with you under a state or territory law
- not legally married to you but lives with you on a genuine domestic basis in a relationship as a couple.

If you're applying to pay for the expense of your spouse, you're not required to provide any additional evidence with your application.

#### Child

A child is someone less than 18 years old.

To be considered your dependent, the child must be either your:

- biological child
- adopted child
- stepchild
- child of your spouse
- a child within the meaning of the *Family Law Act 1975*.

If you're applying to pay for the expense of your child who meets one of these criteria, you're not required to provide any additional evidence with your application.

If your application is to pay for the expenses of your child who is 18 years or older, you'll need to satisfy that an interdependent relationship or a substantially financial dependent relationship exists between you and your child.

#### Interdependent

An interdependent relationship is a relationship between 2 people that meets **all** the following conditions:

- they have a close personal relationship
- they live together
- one or both provides financial support to the other
- one or both provides domestic support and personal care to the other.

You may also be considered to have an interdependent relationship if you have a close personal relationship but live apart temporarily. An example is if one or both of you are:

- temporarily working or studying interstate or overseas
- detained in prison
- receiving care for a physical, intellectual, or psychiatric disability.

#### Evidence

Once you have read the following information, you may wish to use or print our [Interdependent relationship checklist](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/withdrawing-and-using-your-super/early-access-to-super/access-on-compassionate-grounds/access-on-compassionate-grounds-what-you-need-to-know/interdependent-relationship-checklist) to assist you in collecting the required evidence for your application.

To show that you are in an interdependent relationship with another person, you need to provide:

- documents showing that you both live at the same address or, if you're temporarily living apart, that you normally live together

- this could be a joint bank statement or a phone or utility bill for example
- if you are temporarily living apart, your application needs to explain why.
- evidence of the financial support provided, including bank statements from either people that clearly shows payments to the other person or made on their behalf
- a statutory declaration form detailing all the circumstances of the relationship between the persons, including (where relevant)

- duration of your relationship
- whether or not a sexual relationship exists
- degree of mutual commitment to a shared life
- ownership, use and acquisition of property
- care and support of children
- public aspects of your relationship
- degree of emotional support provided to each other
- degree to which the relationship is one of mere convenience
- any information that indicates you intend for the relationship to be permanent.

##### Example: evidence to support interdependency

Alix makes an application for compassionate release of super to modify her home to accommodate her adult son’s special needs arising from a severe disability. To support her application that her son is a dependant both Alix and her son provide:

- statutory declarations that they

- have shared and continue to share a close and personal relationship for over 2 years
- have lived together for more than 2 years
- provide domestic support in the form of cleaning and cooking and emotional support to each other given they have no other living relatives, and
- due to her son's disability, he can't live on his own, so the current situation will be permanent
- electricity bills confirming they live at the same address
- copies of bank statements, showing that Alix has provided for the last 8 years, and continues to provide, financial support of $100 a week to her son.

As they live together Alix is also able to show that she pays for all bills, and everyday expenses for her and her son.

In this case we are satisfied that an interdependency relationship exists between Alix and her son.

End of example
### Substantially financially dependent

A person is substantially financially dependent on another where one person is unable to meet their normal living expenses without the financial support of the other person. Your application needs to include information and financial documents that show:

- you make regular, continuous, substantial financial payments to, or on behalf of, the other person for a significant period
- these payments cover all or a substantial portion of the person's normal living expenses
- the person would be unable to afford their normal living expenses without these payments (such as groceries, mortgage or rent, transportation costs, utility bills and medical expenses).

#### Evidence

Once you have read the following information, you may wish to use or print our [Financial dependant checklist](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/withdrawing-and-using-your-super/early-access-to-super/access-on-compassionate-grounds/access-on-compassionate-grounds-what-you-need-to-know/financial-dependant-checklist) to help you collect the required evidence for your application.

To prove you're in a substantially financially dependent relationship with another person, you need to provide:

- a written statement or letter (this can include a statutory declaration from yourself or the dependant that includes the following information about the relationship

- how regularly financial support is provided
- value of financial support provided
- duration of the financially dependent relationship
- whether the other person's normal living expenses are financed by these payments
- level of reliance the other person has on the financial support provided
- whether the other person has any other sources of income and, if so, the value
- any other information that supports the relationship.
- financial documents that

- support the written statement or letter and clearly demonstrate that you financially support the other person to meet their normal living expenses (such as groceries, mortgage payments or rent, transportation costs, utility bills, medical expenses) on a regular basis for a significant period
- show the other person couldn't meet their living expenses without your financial support.

Financial documents that can demonstrate the financial support include:

- your and the other person's bank statements for the same period, showing

- transfer and receipt of money to, or on behalf of, the other person
- how the money is used to fund the other person's normal living expenses
- any income the other person is receiving.
- receipts for expenses you have paid on behalf of the other person
- documents detailing any employment payments or government help provided to the dependant that show any other income they have.

##### Example: evidence to support substantial financial dependency

Dev makes an application for compassionate release of super for medical treatment for his mother. Dev and his mother share a close relationship, and he supports his mother financially. They don't live together. To support a substantially financial relationship, Dev provides us with:

- copies of bank statements from himself and his mother showing fortnightly transfers of money to support his mother that show

- his mother used the money transferred by Dev to buy essential everyday living expenses
- the arrangement has been occurring for more than 12 months
- Dev’s mother doesn't receive any other income or financial assistance.
- copies of receipts for shopping expenses, medical expenses, and rent payments that Dev has been paying for his mother for more than 12 months
- statutory declarations from both Dev and his mother detailing

- the financial support Dev provides to his mother
- how his mother wouldn't be able to maintain a basic standard of living without the support Dev provides.

The supporting bank statements and receipts substantiate the statutory declarations provided by both Dev and his mother.

Given the breadth of supporting material provided by Dev and his mother, we're satisfied that a substantial financial dependency relationship exists.

End of example
## Accessing super to repay borrowed amounts for eligible expenses

If you or your dependant paid for an eligible expense by borrowing money and you don't have the financial capacity to repay the amount, you may be able to access some of your super to repay the outstanding balance of the borrowed amount.

Borrowed amount refers to any debt that was incurred to pay for an eligible expense, where a balance remains outstanding and has a requirement to be repaid. Examples of financial arrangements that may be eligible are:

- amounts borrowed from family or friends
- amounts loaned by a commercial lender (banks or other lenders)
- credit card debts
- amounts owed to 'pay later' services.

As part of your application, you need to provide us with the terms of the arrangement.

### Eligibility criteria

To access your super on compassionate grounds to repay borrowed amounts, all the following conditions need to be met:

- Condition 1 – You or your dependant meet all the eligibility conditions to access your super on compassionate grounds. That is:

- the expense is an eligible expense
- you have the necessary documents to support your expense.

For more information see [expenses eligible for release on compassionate grounds](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/withdrawing-and-using-your-super/early-access-to-super/access-on-compassionate-grounds/expenses-eligible-for-release-on-compassionate-grounds).

- Condition 2 – You or your dependant borrowed money for the purposes of paying for the expense.
- Condition 3 – The borrowed amount was used to pay for the expense.
- Condition 4 – The borrowed amount remains outstanding in part or full.
- Condition 5 – You don’t have the financial capacity to repay the outstanding balance of the borrowed amount in accordance with the terms you agreed to (you need to consider options to repay some or all the borrowed amount before applying).

Where these conditions are met and you can provide the required supporting documents, we can consider approving a release to repay the outstanding balance of the borrowed amount that was used to pay for the eligible expense.

#### Amounts that are not eligible

Any interest or administrative fees, including penalties charged on the borrowed amount can't be considered as part of a release on compassionate grounds.

### Evidence

In addition to the documents required to support your or your dependant's eligibility for the expense, you need to provide additional documents to support the borrowed amount. The documents required will differ depending on whether you or your dependant:

- borrowed money from family or friends
- got a loan from a commercial lender
- used other lenders or financial arrangements.

#### Amounts borrowed from family or friends

If you or your dependant borrowed money from family or a friend, your application must include the following additional documents and information to support the borrowed amounts.

If you don't provide the right evidence your application will be delayed or not be approved. The following information tells you what these documents must include.

Once you have read the following information, you may wish to use or print our [Repaying amounts borrowed from family or friends checklist](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/withdrawing-and-using-your-super/early-access-to-super/access-on-compassionate-grounds/access-on-compassionate-grounds-what-you-need-to-know/repaying-amounts-borrowed-from-family-or-friends-checklist) to help you in collecting the required evidence for your application. You must provide:

- A paid invoice, receipt or bank statement that shows the payment of the expense, including the

- date of payment
- method of payment (electronic payment, credit card, cash)
- amount paid.

All documents need to show who they were issued to. Where you are providing bank statements, you need to ensure that the account holder's name and statement period are visible.

You must provide a [statutory declaration](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/withdrawing-and-using-your-super/early-access-to-super/access-on-compassionate-grounds/access-on-compassionate-grounds-what-you-need-to-know#Statutorydeclarations) from yourself or your dependant that must include:

- the amount borrowed, lender's name, how it was paid, and the date received
- intended use of borrowed amount
- any terms of repayment that were agreed to (this needs to include why the repayment terms can't be met)
- the outstanding balance of the borrowed amount that you aren't able to repay by other means.

You must provide a statutory declaration from the lender that must include:

- the amount loaned, who it was for, how it was paid, and the date paid
- intended use of the loaned amount
- any terms and conditions for the amount loaned (including any information about repayments requirements and the charging of interest or fees)
- the outstanding balance of the loaned amount.

If you entered into any written contracts or agreements that detail the terms of the arrangement, you need to include these documents in your application.

#### Loans from a commercial lender

If you or your dependant obtained a loan from a commercial lender, your application needs to include these additional documents to support the loan:

- an invoice or quote for the expense
- proof the expense has been paid
- financial documents showing the payment of amounts between yourself or your dependant and the lender
- a loan contract
- a statutory declaration from yourself or your dependant.

If you don't provide the right evidence your application will be delayed or not be approved. The following information tells you what these documents need to include.

##### Invoices, receipts and bank statements

Your application must also include:

- a paid invoice, receipt or bank statement that shows the payment of the expense, including the

- date of payment
- method of payment (electronic payment, credit card or cash)
- amount paid
- payer's details
- the loan statement that shows

- the opening balance of the loan
- the date on which the loan was provided
- payment of the amount to you or your dependant's bank account
- any repayments that have been made
- any interest or fees that have been charged
- the account owner's name
- your or your dependant's bank statement that shows

- the incoming payment from the loan account to your personal account, including payment date
- payments to the provider, including the payment dates
- the account owner's name.

**Note:** Where you are providing bank statements, you need to ensure that the account holder's name and statement period are visible.

##### Statutory declaration and loan contract

Your application must also include:

- the loan contract with the terms and conditions of the loan (including any information about repayment requirements and the charging of interest and fees)
- a statutory declaration from yourself or your dependant that includes

- the amount borrowed, lender's name and the date received
- the intended use of the borrowed amount
- the outstanding balance of the borrowed amount that you aren't able to repay by other means
- details of the changes in your or your dependant's circumstances since obtaining the loan that have resulted in the repayment terms not being met
- details of other funding options (see [condition 4](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/withdrawing-and-using-your-super/early-access-to-super/access-on-compassionate-grounds/access-on-compassionate-grounds-what-you-need-to-know#Condition4)) you have considered and why they aren't available.

### Other lenders or financial arrangements

If you or your dependant has borrowed money or incurred a debt to pay for an eligible expense from any other entity, your application needs to include these documents to support this arrangement:

- an invoice or quote for the expense
- proof the expense has been paid
- financial documents showing the payment of amounts between yourself or your dependant and the lender
- a statutory declaration from yourself or your dependant.

If you don't provide the right evidence your application will be delayed or not be approved. The following information tells you what these documents need to include.

#### Paid by credit card

Where you paid for your expense via a credit card, we can only approve the expense amount less any repayments made to the credit card after the payment date of the expense. If your total repayments exceed the cost of the expense, we will be unable to approve any amounts for release.

Due to this your application will need to include statements showing all transactions since the payment of the expense.

#### Invoices, receipts and bank statements

Your application must also include:

- an invoice or quote that includes an itemised list of expenses and their cost
- a paid invoice, receipt or bank statement that shows the payment of the expense, with the:

- date of payment
- method of payment (electronic payment, credit card, cash)
- amount paid
- payer's details.

Where you are providing bank statements, you need to ensure that the account holder's name and statement period are visible.

#### Financial documents and statutory declaration

Your application must also include:

- financial documents that include details of the borrowed amount or debt incurred (including bank statements, loan contracts, written agreement, loan statements or repayment schedules), with the following information

- receipt of the borrowed amounts or debt incurred, including the date
- payments to the provider (or direct payment to the provider from the lender on your or your dependant's behalf), including the date and the amount paid
- any terms and conditions regarding the amount (including any information about repayments requirements and the charging of interest or fees)
- intended use of the borrowed amount or debt incurred (including details of any interest or fees that have been charged and repayments that have been made)
- a statutory declaration from yourself or your dependant with

- the amount borrowed or debt incurred, lender's name and the date received
- intended use of the borrowed amount or debt incurred
- the outstanding balance of the borrowed amount that you aren't able to repay by other means
- details of why you can't make repayments as per the agreed terms
- details of other funding options (see [condition 4](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/withdrawing-and-using-your-super/early-access-to-super/access-on-compassionate-grounds/access-on-compassionate-grounds-what-you-need-to-know#Condition4)) you have considered and why they aren't available.

##### Example: repayment of money borrowed from a family to pay for a funeral

Justin makes an application for compassionate release of super to repay money borrowed from his sibling David, that was used to pay for the funeral of his partner Mary.

To support his eligibility, Justin includes the death certificate for Mary, showing that she passed away 2 years ago. He also provides a quote for $14,200 from a funeral company, showing the itemised costs of their professional fees, the coffin, the death certificate and a celebrant.

To support the payment of the expense, Justin has provided a receipt from the same funeral company confirming the electronic payment of $14,200. The receipt is dated 2 weeks after the date on the quote.

To support the borrowed amount, Justin provided the following documents:

- a statutory declaration from Justin advising

- Justin borrowed $15,000 from David 2 years ago to pay for the funeral of Mary, as Justin didn't have the sufficient savings to pay for the expense at the time
- Justin also advised that he has made 3 repayments over the last 2 years totalling $1,500
- Justin is unable to make further repayments due to cost-of-living pressures
- a statutory declaration from David advising

- David lent $15,000 to Justin 2 years ago to pay for the funeral of his wife Mary, via electronic bank transfer
- David and Justin didn't document any repayment terms, however it was agreed that Justin would repay the full amount to David
- Justin has made 3 repayments totalling $1,500 since obtaining the loan.

In this case, we consider Mary a dependant of Justin as they were spouses. The documents provided support that Justin borrowed $15,000 from David to pay for the funeral expenses of Mary. As only $14,200 of the borrowed amount was required for the funeral expense and Justin has repaid $1,500 to David, we can approve a release of up to $12,700 to repay the outstanding balance of the borrowed amount.

End of example
## Evidence requirements

You must provide [evidence relevant to the specific ground](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/withdrawing-and-using-your-super/early-access-to-super/access-on-compassionate-grounds/expenses-eligible-for-release-on-compassionate-grounds) for compassionate release and where relevant to show that someone is your dependant.

If you don't provide all required evidence your application will be delayed or not be approved.

The following requirements apply to all the evidence and information that you provide.

If you submit your application **online**, you need digital copies of the required evidence:

- We accept photos of documents – supported file formats are PDF, gif, jpeg and png.
- We **don't** accept screen shots of text messages or emails.
- Our system won't accept more than 20 attachments and 10 MB per attachment.

If you submit a paper application, you need to ensure you provide copies of your documents. Don't provide original documents as these will not be returned.

Where your evidence, including quotes and invoices or registered medical practitioner and specialist reports, are written in a language other than English:

- you will need to have it translated
- the translator must be accredited by the [National Accreditation Authority for Translators and Interpreters (NAATI)External Link](https://www.naati.com.au/).

Don't include images of a disturbing nature to support your application as they're not necessary to assess your application.

We may carry out checks with your providers to validate evidence provided in your application, including where missing or additional information is required, including contacting service providers to validate invoices, quotes or medical reports.

When providing financial statements (for example, from a lender) to support your application, you need to ensure these are on the provider's letterhead and include the account holder’s name and statement period.

### Quotes and invoices

Under each ground we also need to see evidence of expenses that show the amounts you’re seeking to release from your super account. This can include an itemised quote or an invoice that shows the amount and a description of each component.

Invoices and quotes must:

- include an itemised list of expenses and their respective costs, lump sum quotes or invoices won't be accepted
- include the provider's name and contact details
- be on the provider's letterhead
- be addressed to you, or your dependant if you are applying for them
- be dated

- no more than 6 months old for unpaid quotes
- no more than 30 days old for unpaid invoices.
- be converted to Australian dollars if they're in a foreign currency, at the exchange rate at the time you apply. If we approve your application, we won't recalculate the conversion at the time of approval.

If the quote or invoice has been paid by a borrowed amount there are no timeframe requirements for the invoice or quote.

## Statutory declarations

Some applications require statutory declarations to be provided as a supporting document. This can be any valid statutory declaration form (Commonwealth, State or Territory), so long as it meets the requirements of the Act it is made under.

You can make a Commonwealth statutory declaration via the paper form or through your myGov account. To access the Commonwealth statutory declaration form and for guidance on completing this form, see [how to complete a statutory declarationExternal Link](https://www.ag.gov.au/legal-system/statutory-declarations/about-commonwealth-statutory-declarations).


## Residential properties a foreign person can buy

From 1 April 2025 to 31 March 2027, foreign persons are banned from purchasing established dwellings in Australia (limited exceptions apply). This includes temporary residents purchasing an established dwelling for use as a principal place of residence. Temporary residents can still apply for approval to purchase vacant land or new dwellings.

The types of residential property that a foreign person can buy in Australia include:

- a [new or near-new dwelling](https://www.ato.gov.au/individuals-and-families/investments-and-assets/foreign-resident-investments/foreign-investment-in-australia/exemption-certificates-for-property-developers#whatisanewdwelling)
- an established dwelling for redevelopment
- an off-the-plan property
- vacant residential land
- an established dwelling for a foreign company that employs workers from Pacific island countries and Timor-Leste and are required to provide housing for them, including those participating in the [Pacific Australia Labour MobilityExternal Link](https://www.palmscheme.gov.au/) (PALM) scheme.

If you intend to buy a non-residential asset (including commercial real estate, agricultural land, registrable water interest, business interest or mining production), see [Steps to invest in Australian non-residential assets](https://www.ato.gov.au/individuals-and-families/investments-and-assets/foreign-resident-investments/foreign-investment-in-australia/register-of-foreign-ownership-of-australian-assets/how-a-foreign-investor-registers-non-residential-assets/steps-to-invest-in-australian-non-residential-assets).

## Types of dwellings a foreign person can buy

Foreign persons can buy the following types of dwellings.

### New or near new dwelling

A **new or near-new dwelling** is a dwelling that:

- will be, is being, or has been, built on residential land
- is part of a residential development
- was previously sold by the developer, but the transaction ultimately failed to settle
- has not been previously occupied for more than 12 months in total.

### Established dwelling

An **established dwelling** is an existing dwelling on residential land and is not a new dwelling as described above.

### **Vacant land**

**Vacant land** is land that has no substantive permanent building on it, that:

- can be lawfully occupied by persons, goods, or livestock
- generally, has not previously had an established dwelling on it.

For more information, see [Apply to buy residential property as a foreign person](https://www.ato.gov.au/individuals-and-families/investments-and-assets/foreign-resident-investments/foreign-investment-in-australia/residential-property-application-for-foreign-investors).


If you use information about tax losses in a later tax return – for example, you carry forward a tax loss – you must keep the records until the end of any period of review for the income tax return in which the loss is fully deducted.

For more information, see [Taxation Determination TD 2007/2](https://www.ato.gov.au/law/view/document?docid=TXD/TD20072/NAT/ATO/00001) *Income tax: should a taxpayer who has incurred a tax loss or made a net capital loss for an income year retain records relevant to the ascertainment of that loss only for the record retention period prescribed under income tax law?*


## Using PAYG instalments to manage your tax

Whether you run your own business or earn investment income, planning ahead for your income tax is important to help you keep a healthy cash flow.

PAYG instalments help you do this, this is how it works.

1. You enter the PAYG instalments system. We may enter you automatically, or you can voluntarily enter.
2. You make regular payments (instalments) during the year, usually once every 3 months. The amount you pay is based on your business and investment income.
3. When you lodge your tax return, the PAYG instalments you have paid during the year are offset against your tax, leaving you with little or no tax to pay.

PAYG instalments are different to [PAYG withholding](https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/payg-withholding). With PAYG withholding, employers collect tax from the payments they make to their employees, and send it to the ATO, so employees don't have a big tax bill at the end of the year.

This video explains the difference between PAYG withholding and PAYG instalments. It also explains how PAYG instalments can help you avoid a large tax bill when you lodge your tax return.

**Media:** Pay as you go instalments - Tax basics for small business

[https://tv.ato.gov.au/ato-tv/media?v=bi9or7odswuq4cExternal Link](https://tv.ato.gov.au/ato-tv/media?v=bi9or7odswuq4c) (**Duration:** 02:44)

## Automatic entry to PAYG instalments

If you lodge a tax return with instalment income above the entry threshold, you may be required to pay PAYG instalments.

### Entry thresholds

We work out whether you need to pay PAYG instalments based on information you reported in your latest tax return.

One of the things we look at is your [instalment income](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/payg-instalments/calculate-your-payg-instalments/instalment-income). This is your gross business and investment income, excluding GST and any capital gains.

If you are an **individual (including a sole trader) or trust**, you will automatically enter the PAYG instalments system if you have all of the following:

- instalment income from your latest tax return of $4,000 or more
- tax payable on your latest notice of assessment of $1,000 or more
- estimated (notional) tax of $500 or more.

A **company or super fund** will automatically enter the PAYG instalments system if any of the following apply; it:

- has instalment income from its latest tax return of $2 million or more
- has estimated (notional) tax of $500 or more
- is the head company of a consolidated group.

### How you start paying instalments

We will let you know when you have entered the PAYG instalments system.

- If you are registered for myGov with a linked ATO account, you will receive a letter in your myGov Inbox.
- If you have Online services for business, or Standard Business Reporting software, you will receive your instalment information 21 days before the due date.
- If none of the above applies, you will receive a paper letter in the mail.

If we have your mobile phone number we will also remind you via SMS.

When we contact you, we will let you know:

- when to pay
- how often to pay – this depends on your circumstances, but most people pay quarterly
- how much to pay, including your options for calculating your instalments.

You will start making payments once we send you an activity statement or instalment notice.

## Voluntary entry to PAYG instalments

If you are new to business, or you think you will earn business and investment income over the [threshold](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/payg-instalments/starting-payg-instalments#Entrythresholds), it's a good idea to voluntarily enter PAYG instalments.

Prepaying your tax through PAYG instalments will help you smooth out your cashflow and avoid a large tax bill when you lodge your tax return.

### How to start voluntary PAYG instalments

To get started with voluntary PAYG instalments:

1. [Estimate the amount of tax to pay](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/payg-instalments/starting-payg-instalments#Step1Estimatetheamountoftaxtopay)
2. [Make a request to enter the PAYG instalments system](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/payg-instalments/starting-payg-instalments#Step2MakearequesttoenterthePAYGinstalmen)
3. [Pay your instalments](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/payg-instalments/starting-payg-instalments#Step3Payyourinstalments)


### Ineligible contributions

The following contributions are **not** eligible:

- contributions made before 1 July 2017
- super guarantee (SG) contributions made by your employer
- contributions to defined benefit interests or constitutionally protected funds
- mandated employer or member contributions made for you under an award or industrial agreement
- member contributions made for you by your spouse, parent or other friends or family
- amounts you receive under a contributions-splitting arrangement
- government co-contributions
- contributions under a structured settlement or personal injury order
- amounts contributed to super as part of the small business CGT concessions
- amounts transferred from a KiwiSaver scheme that are Australian-sourced amounts or returning New Zealand-sourced amounts
- [applicable fund earnings](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/foreign-super-funds/transfer-from-a-foreign-super-fund-to-an-australian-super-fund) from a foreign fund transfer you elect to include in the receiving fund's assessable income
- contributions that are mandatory under a state or territory law or the rules of a fund
- excess concessional or non-concessional contributions, which are not eligible even if they otherwise would have been before they were identified to be in excess of the relevant contribution cap for the applicable income year
- COVID-19 early release of superannuation re-contributions.

If there are any of these amounts in your request for a FHSS determination, your request may be delayed or cancelled.


By including your spouse's income in your tax return, we can work out if you’re entitled to specific offsets, rebates or reductions. It also lets us know if you're liable for the Medicare levy surcharge. If you don't include your spouse’s income, we may need to amend your tax return which may leave you with a debt.

A spouse is anyone you've lived with in a genuine domestic relationship at any point during the year.  This includes de facto and same-gender couples.  Even if you're not married, you may have a spouse for tax purposes.

### Do I have to include my spouse's income in my tax return?

Yes, even if you keep your tax affairs separate from your spouse, you'll still need to provide us with their income information. We need this information to work out whether:

### What spouse income information do I include?

You'll need to include your spouse's taxable income. Check through the spouse income labels on your tax return to see if there are other fields that apply to your spouse's income.

### What if my spouse is a foreign resident for tax purposes?

Even if your spouse is a foreign resident for tax purposes, you need to declare that you have a spouse. You also need to include their global income in the spouse income disclosures on your tax return.

### What if I don't know my partner's income details?

If you can't access your partner’s income details, you can make a reasonable estimate of these amounts.  You can use information like:

### What if I separated from my spouse or started a new relationship?

Relationship breakdowns, while unfortunate, are a reality we’ve accounted for when it comes to lodging your return.

If you’ve **separated from your spouse** during the financial year and no longer live together, here’s what to do:

If you had **more than one spouse** during the financial year, complete this section with the details of your latest spouse. For example, the spouse you were in a relationship with on 30 June.


## Compulsory repayment thresholds and rates

The repayment thresholds and marginal rates are updated annually for the compulsory repayment of:

- Higher Education Loan Program (HELP)
- VET Student Loan (VSL)
- Student Financial Supplement Scheme (SFSS)
- Student Start-up Loan (SSL)
- ABSTUDY Student Start-up Loan (ABSTUDY SSL)
- Australian Apprenticeship Support Loan (AASL) – previously known as Trade Support Loan (TSL).

For more information, see:

- [Study and training loan repayment calculator](https://www.ato.gov.au/calculators-and-tools/study-and-training-loan-repayment-calculator)
- [Study and training support loans](https://www.ato.gov.au/individuals-and-families/study-and-training-support-loans)

## Current repayment thresholds and rates

All study and training loans are covered by one set of thresholds and rates. From the 2025–26 income year, compulsory repayments are calculated using marginal rates. Your compulsory repayment is only calculated on income above the minimum threshold.

If your repayment income is $179,286 or more, your compulsory repayment will continue to be 10% of your total repayment income. This is to ensure you are not worse off because of the shift to marginal rates.

For more information on this change, see [Study and training loans – what's new](https://www.ato.gov.au/individuals-and-families/study-and-training-support-loans/study-and-training-loans-what-s-new).

The hierarchy in which compulsory repayments are applied to study and training loans is:

- HELP
- VSL
- SFSS
- SSL
- ABSTUDY SSL
- AASL.

**Note:** Repayment income (RI) is taxable income plus any:

- total net investment loss (which includes net rental losses)
- total reportable fringe benefits amounts
- reportable super contributions
- exempt foreign employment income.

Table 1: 2025–26 repayment thresholds and rates

Repayment income (RI)

Repayment amount on this income

$0 – $67,000

Nil

$67,001 – $125,000

15c for each $1 over $67,000

$125,001 – $179,285

$8,700 plus 17c for each $1 over $125,000

$179,286 and over

10% of your total repayment income

## Previous repayment thresholds and rates

Compulsory repayments for 2024–25 and earlier years were based on total repayment income.

Table 2: 2024–25 repayment income thresholds and rates

Repayment income (RI) thresholds

Repayment rate (% of repayment income)

Below $54,435

Nil

$54,435–$62,850

1.0%

$62,851–$66,620

2.0%

$66,621–$70,618

2.5%

$70,619–$74,855

3.0%

$74,856–$79,346

3.5%

$79,347–$84,107

4.0%

$84,108–$89,154

4.5%

$89,155–$94,503

5.0%

$94,504–$100,174

5.5%

$100,175–$106,185

6.0%

$106,186–$112,556

6.5%

$112,557–$119,309

7.0%

$119,310–$126,467

7.5%

$126,468–$134,056

8.0%

$134,057–$142,100

8.5%

$142,101–$150,626

9.0%

$150,627–$159,663

9.5%

$159,664 and above

10%

Table 3: 2023–24 repayment income thresholds and rates

Repayment income (RI)

Repayment rate

Below $51,550

Nil

$51,550–$59,518

1.0%

$59,519–$63,089

2.0%

$63,090–$66,875

2.5%

$66,876–$70,888

3.0%

$70,889–$75,140

3.5%

$75,141–$79,649

4.0%

$79,650–$84,429

4.5%

$84,430–$89,494

5.0%

$89,495–$94,865

5.5%

$94,866–$100,557

6.0%

$100,558–$106,590

6.5%

$106,591–$112,985

7.0%

$112,986–$119,764

7.5%

$119,765–$126,950

8.0%

$126,951–$134,568

8.5%

$134,569–$142,642

9.0%

$142,643–$151,200

9.5%

$151,201 and above

10%

Table 4: 2022–23 repayment income thresholds and rates

Repayment income (RI)

Repayment rate

Below $48,361

Nil

$48,361–$55,836

1.0%

$55,837–$59,186

2.0%

$59,187–$62,738

2.5%

$62,739–$66,502

3.0%

$66,503–$70,492

3.5%

$70,493–$74,722

4.0%

$74,723–$79,206

4.5%

$79,207–$83,958

5.0%

$83,959–$88,996

5.5%

$88,997–$94,336

6.0%

$94,337–$99,996

6.5%

$99,997–$105,996

7.0%

$105,997–$112,355

7.5%

$112,356–$119,097

8.0%

$119,098–$126,243

8.5%

$126,244–$133,818

9.0%

$133,819–$141,847

9.5%

$141,848 and above

10%

Table 5: 2021–22 repayment income thresholds and rates

Repayment income (RI)

Repayment rate

Below $47,014

Nil

$47,014–$54,282

1.0%

$54,283–$57,538

2.0%

$57,539–$60,991

2.5%

$60,992–$64,651

3.0%

$64,652–$68,529

3.5%

$68,530–$72,641

4.0%

$72,642–$77,001

4.5%

$77,002–$81,620

5.0%

$81,621–$86,518

5.5%

$86,519–$91,709

6.0%

$91,710–$97,212

6.5%

$97,213–$103,045

7.0%

$103,046–$109,227

7.5%

$109,228–$115,781

8.0%

$115,782–$122,728

8.5%

$122,729–$130,092

9.0%

$130,093–$137,897

9.5%

$137,898 and above

10%

Table 6: 2020–21 repayment income thresholds and rates

Repayment income (RI)

Repayment rate

Below $46,620

Nil

$46,620–$53,826

1.0%

$53,827–$57,055

2.0%

$57,056–$60,479

2.5%

$60,480–$64,108

3.0%

$64,109–$67,954

3.5%

$67,955–$72,031

4.0%

$72,032–$76,354

4.5%

$76,355–$80,935

5.0%

$80,936–$85,792

5.5%

$85,793–$90,939

6.0%

$90,940–$96,396

6.5%

$96,397–$102,179

7.0%

$102,180–$108,309

7.5%

$108,310–$114,809

8.0%

$114,810–$121,698

8.5%

$121,699–$128,999

9.0%

$129,000–$136,739

9.5%

$136,740 and above

10%

From 1 July 2019, all study and training loans are covered by one set of thresholds and rates.

Table 7: 2019–20 repayment income thresholds and rates

Repayment income (RI)

Repayment rate

Below $45,881

Nil

$45,881–$52,973

1.0%

$52,974–$56,151

2.0%

$56,152–$59,521

2.5%

$59,522–$63,092

3.0%

$63,093–$66,877

3.5%

$66,878–$70,890

4.0%

$70,891–$75,144

4.5%

$75,145–$79,652

5.0%

$79,653–$84,432

5.5%

$84,433–$89,498

6.0%

$89,499–$94,868

6.5%

$94,869–$100,560

7.0%

$100,561–$106,593

7.5%

$106,594–$112,989

8.0%

$112,990–$119,769

8.5%

$119,770–$126,955

9.0%

$126,956–$134,572

9.5%

$134,573 and above

10%


## Concessional contributions

Concessional contributions include:

- employer contributions, such as

- employer super guarantee contributions and any superannuation guarantee charge (SGC) shortfall amounts we've collected from your employer where they failed to pay contributions on time for you
- salary sacrificing contributions
- additional concessional contributions your employer makes as part of an agreement with you
- other amounts paid by your employer from your before-tax income to your super fund, such as administration fees and insurance premiums
- personal contributions you're entitled to claim as an income tax deduction
- notional taxed contributions to [defined benefit and constitutionally protected funds](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/caps-limits-and-tax-on-super-contributions/super-contributions-to-defined-benefit-and-constitutionally-protected-funds))
- [unfunded defined benefit contributions](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/caps-limits-and-tax-on-super-contributions/super-contributions-to-defined-benefit-and-constitutionally-protected-funds#Unfundeddefinedbenefitfunds)
- some amounts allocated from a fund reserve (amounts that form part of the fund's assessable income)
- amounts transferred from a [foreign super fund](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/foreign-super-funds/transfer-from-a-foreign-super-fund-to-an-australian-super-fund) where the assessable amount is greater than the vested amount at time of transfer
- for people over 18, contributions by

- a spouse living separately and apart from you on a permanent basis
- a parent, child, relative or friend if you are 18 years old or older
- any other third party other than an employer or your spouse.

Concessional contributions are taxed in your super fund at the rate of 15%, payable by the fund.

## Non-concessional contributions

Non-concessional contributions include:

- contributions you or your employer makes from your after-tax income
- contributions your spouse makes to your super fund, unless

- your spouse is contributing for you as your employer
- you're separated or permanently living apart from your spouse, in which case a contribution they make for you is a third-party concessional contribution
- [personal contributions](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/how-to-save-more-in-your-super/personal-super-contributions) you have **not** claimed and been allowed as an income tax deduction
- excess concessional (before-tax) contributions you have **not** [released from your super fund](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/caps-limits-and-tax-on-super-contributions/concessional-contributions-cap)
- contributions exceeding the lifetime CGT cap allowable under the [small business CGT exemptions](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/caps-limits-and-tax-on-super-contributions/understanding-concessional-and-non-concessional-contributions#SuperCGTcapelectionamountsundersmallbusi)
- retirement benefits you withdraw from a super fund and 're-contribute' to super and which you have **not** claimed or been allowed as an income tax deduction
- contributions made for you by someone else if you are under 18 **and** the contributor is not your employer
- most [transfers from foreign super funds](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/foreign-super-funds/transfer-from-a-foreign-super-fund-to-an-australian-super-fund) (including [New Zealand KiwiSaver contributions](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/foreign-super-funds/trans-tasman-retirement-savings-transfers)), not including amounts in your fund's assessable income
- life insurance premiums and fund fees (in some cases).

### Exclusions from non-concessional contributions

The following types of contributions do **not** count towards your non-concessional contributions cap:

- personal injury payments (also known as [structured settlement contributions](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/caps-limits-and-tax-on-super-contributions/understanding-concessional-and-non-concessional-contributions#Personalinjuryelectionamounts))
- contributions you chose to count towards your [capital gains tax (CGT) cap](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/caps-limits-and-tax-on-super-contributions/understanding-concessional-and-non-concessional-contributions#SuperCGTcapelectionamountsundersmallbusi) that have **not exceeded** your lifetime limit
- [downsizer contributions](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/how-to-save-more-in-your-super/downsizer-super-contributions) from the proceeds of selling your home
- [re-contribution of COVID-19 early release superannuation amounts](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/how-to-save-more-in-your-super/re-contributing-covid-19-early-release-super-withdrawals).

These types of contributions are only excluded if you meet all the relevant conditions. You must specifically ask your fund to exclude them, by providing it with the relevant form before or when you contribute (for details, see the links above).

Government co-contributions are also not counted as non-concessional contributions. You don't have to take any action for these to be excluded.

#### Personal injury election amounts

You may be able to exclude personal contributions arising from a personal injury payment from counting towards your non-concessional contributions cap.

You can only use the exclusion for the part of the payment that is compensation or damages for your personal injury.

You must advise your fund that you are choosing (electing) to exclude the amount before or when you make the contribution. Otherwise, your fund must report the amounts as personal contributions.

Your election can be made in the approved [Contributions for personal injury election](https://www.ato.gov.au/forms-and-instructions/superannuation-contributions-for-personal-injury) form, although this is not compulsory. However, you must provide your fund with all the information required by this form.

There is no limit on the amount you can claim as a personal injury election amount, but there are strict conditions on the contributions you can claim the exclusion for.

If the exclusion doesn't apply to you, the amount will be treated as a normal personal contribution and count towards your non-concessional contributions cap.

**Example: personal injury compensation**

Bruce was injured in a car accident. As a result of his injury, he is not expected to ever work again in a role for which he is suited through education, training or experience. Two qualified medical practitioners have certified this.

Three years after his injury, Bruce receives $2 million from the insurers as a structured settlement of his claim. This amount is comprised of:

- $1.5 million compensation for personal injury
- $500,000 compensation for medical costs.

Bruce contributes $1.75 million to his super within 90 days of receiving the payment. He uses the remaining $250,000 to pay the debts he accrued for hospital stays and physiotherapy as a result of his injury.

Bruce can only choose (elect) to exclude $1.5 million of the contribution (the part of the payment which was compensation for the personal injury) from being counted towards his non-concessional cap. The remaining $250,000 will count towards his non-concessional cap.

End of example
#### Super CGT cap election amounts under small business exemptions

You may be able to choose (elect) to exclude personal contributions of amounts arising from a capital gains tax (CGT) event from counting towards your non-concessional contributions cap.

To make this election, the amount you contribute must arise from a capital gains event or a 'CGT look-through earnout right' and meet the requirements of either the:

- [small business 15-year exemption](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/incentives-and-concessions/small-business-cgt-concessions/small-business-15-year-exemption)
- [small business retirement exemption](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/incentives-and-concessions/small-business-cgt-concessions/small-business-retirement-exemption).

If you contribute an amount arising from a CGT event to your super, it will not count towards your non-concessional contributions cap if you notify your fund using the [Capital gains tax cap election](https://www.ato.gov.au/forms-and-instructions/capital-gains-tax-cap-election) form.

There is a lifetime cap on the amount you can contribute to your super under these exemptions without counting towards for non-concessional contributions cap (see [CGT cap election](https://www.ato.gov.au/forms-and-instructions/capital-gains-tax-cap-election)).

You must provide this form to your fund before or at the time you make the contribution. Otherwise, your fund must report the amount as a personal contribution.

Use of this approved* election* form is not compulsory. However, you must provide your fund with all the information required by the form.

If the exclusion criteria for either exemption does not apply to you, the amount will be treated as a normal personal contribution. It will count towards your non-concessional contributions cap.

**Example: super CGT cap election**

Barry owned a small business for 33 years. When he was 72 years old, he started selling his business assets in preparation for retirement. He is eligible to use the small business 15-year exemption.

In the 2022–23 income year, Barry contributed to his super fund $550,000 of the capital proceeds he received from selling some of his eligible assets. At the same time, he notified his fund that he was electing to use $550,000 of his super CGT cap, under the small business 15-year exemption. This was to exclude the contribution from counting towards his non-concessional contributions for the year.

Barry's super CGT cap for the year is $1,650,000, reduced to $1,100,000 after his election to use $550,000 of his super CGT cap.

End of example
## Compensation arising from financial advice

Your super fund may receive compensation from a financial services provider if you received inappropriate financial advice, or if you paid fees but did not receive advice. The compensation may be a refund or reimbursement of adviser fees, or an amount to compensate for lost earnings. It may also include an interest component.

The compensation may count towards your contribution caps depending on your circumstances.

If the finance service provider paid the compensation to your super fund without your direction, the compensation will be a **concessional** contribution in the financial year the fund receives it.

The compensation will be a **non-concessional** contribution in the financial year it is received by the fund if it has been paid to your super fund and allocated to your account and either of the following applies:

- the compensation was paid to you, and you subsequently contributed it as a personal contribution to your super fund
- you directed the financial service provider to pay the compensation that was payable to you into your super fund.

However, it will be a concessional contribution to the extent that it is covered by a valid and acknowledged notice of intent to claim a deduction and is allowable as a deduction.

For technical guidance, see [Super contribution caps](https://www.ato.gov.au/law/view/document?DocID=AFS/SuperContributionCaps/00001&PiT=99991231235958) in our Legal Database.

## First home super saver scheme contributions

You can contribute an amount up to your existing superannuation contribution caps into your super fund to save for your first home under the [first home super saver](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/withdrawing-and-using-your-super/early-access-to-super/first-home-super-saver-scheme) (FHSS) scheme.

Your FHSS contributions count towards your contribution caps for the year they were made. If you exceed your caps (even if you made contributions only for the purposes of the FHSS scheme), you could pay more tax. This will be separate to any tax you pay on the FHSS release amount.


## How capital gains or losses apply

When you sell or dispose of a rental property you may make a capital gain or loss.

A capital gain or loss is the difference between what it cost you to obtain and improve the property (the cost base) and the amount you receive when you dispose of it.

If you make a:

- net capital gain in an income year, you'll generally be liable for capital gains tax (CGT)
- net capital loss, you can carry it forward and deduct it from your capital gains in later years.

Use our calculator or steps to [calculate your CGT](https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/calculating-your-cgt).

To see how to enter your capital gains or losses when completing your tax return in myTax, watch our video on [how to complete myTax when you have sold a rental propertyExternal Link](https://tv.ato.gov.au/ato-tv/media?v=bi9or7odtggh5r).

You may be entitled to a part of full [main residence exemption](https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/property-and-capital-gains-tax/your-main-residence-home/eligibility-for-main-residence-exemption) if you lived in the property before renting it out, see [Treating your former home as main residence](https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/property-and-capital-gains-tax/your-main-residence-home/treating-former-home-as-main-residence).

You will be entitled to a part main residence exemption if you [rented out part of your home](https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/property-and-capital-gains-tax/your-main-residence-home/using-your-home-for-rental-or-business).

For a summary fact sheet with common scenarios about CGT and eligibility for the main residence exemption, go to the ATO Publication Ordering Service to download [Capital gains tax and the main residence exemption](https://iorder.com.au/publication/publicationdetails.aspx?pid=75488-04.2025).

If you are a co-owner of the property, you'll make a capital gain or loss in accordance with your ownership interest in the property.

The application of CGT depends on when you acquired the property:

- If you acquired the property before 20 September 1985 then it will only apply to certain capital improvements made after that date.
- If you acquired the property after 20 September 1985, then it will apply to the entire property.

**Watch:** Selling your rental property

**Media:** Selling your rental property

[https://tv.ato.gov.au/ato-tv/media?v=bd1bdiubfs6pgxExternal Link](https://tv.ato.gov.au/ato-tv/media?v=bd1bdiubfs6pgx) (**Duration:** 2:46)

**Watch:** Selling a rental property that was your home

**Media:** Selling a rental property that was your home

[https://tv.ato.gov.au/ato-tv/media?v=bd1bdiubfs6pgqExternal Link](https://tv.ato.gov.au/ato-tv/media?v=bd1bdiubfs6pgq) (**Duration:** 3:17)

For a summary fact sheet with common scenarios about the CGT on sale of property, go to the ATO Publication Ordering Service to download [Capital gains tax on the sale of property](https://iorder.com.au/publication/publicationdetails.aspx?pid=75443-04.2025).

## Working out your costs

The [cost base and reduced cost base](https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/calculating-your-cgt/cost-base-of-asset) of a property include the amount you paid for it together with some incidental costs associated with acquiring, holding and disposing of it (such as legal fees, stamp duty and real estate agent’s commissions).

It does not include amounts that you have claimed or could claim as a tax deduction.

When you sell your rental property, the time of the event (the time at which you make a capital gain or loss) is when you enter into the contract, not when you settle.

### Example: capital gains on the sale of a co-owned rental property

Karl and Louisa bought a residential rental property in November 2016 for a purchase price of $750,000.

They incur costs of purchase, including stamp duty and legal fees, of $30,000.

After purchase they improved the property by constructing a fence for $6,000.

Over the 7 years of ownership of the property, they claimed $5,000 in decline in value deductions and $35,000 in capital works deductions. (If they had purchased the property after 9 May 2017 then there would be no deductions for the decline in value of any second-hand depreciating assets.)

In June 2025, they entered into a contract to sell the property, and in November 2025 it was sold for $900,000. Their costs of sale, including legal fees, were $10,000.

**A + B + C + D − E - F = Cost base**

Where:

- A is the purchase price
- B is the costs of the purchase
- C is the cost of property improvements
- D is the costs of sale
- E is the capital works deductions
- F is the total amount of decline in value deductions claimed over the period of ownership of the rental property

$750,000 + $30,000 + $6,000 + $10,000 − $35,000 − $5,000 = $756,000

The capital gains outcomes are:

Proceeds = $900,000

**Proceeds − Cost base = Capital gain outcome**

$900,000 − $756,000 = $144,000

As the property has been owned for more than a year, Karl and Louisa can apply  the 50% discount and reduce the capital gain to $72,000.

Karl and Louisa owned the property jointly. This means that they each have a capital gain of $36,000 which they will need to put in their tax return for the year in which the contract to sell the property was made, being the 2024–25 year.

End of example
For more information on working out your costs, see [Rental properties guide](https://www.ato.gov.au/forms-and-instructions/rental-properties-2025).

## Capital expenses

Expenses you incur when purchasing, acquiring, selling, or disposing of your rental property are capital expenses. You may be able to include capital expenses when calculating the 'cost base' of your property. This can help you reduce the amount of CGT you pay when you sell your property.

Capital expenses include:

- conveyancing costs paid to a conveyancer or solicitor
- title search fees
- valuation fees (when it is a private valuation conducted by your solicitor)
- stamp duty on the transfer of the property
- initial repairs.

### Example: capital expenses

Stephen recently purchased a rental property that needed repairs before the tenants moved in. He paid tradespeople to:

- repaint dirty walls
- replace broken hardwired light fittings
- repair doors on 2 bedrooms.

The house was also treated for damage by white ants.

Because Stephen incurred these expenses to make the property suitable for rent (not while he was using the property to generate rental income), these expenses are capital expenses and are added to the cost base of the property.

End of example
## GST on rental properties

Generally, the sale of existing residential premises is input taxed, that is, the sale price doesn't include GST. This means:

- you can't claim GST credits on any costs associated with buying or selling
- GST does not apply to the rental payments you receive.

However, if you [build new residential premises](https://www.ato.gov.au/businesses-and-organisations/assets-and-property/property/property-development-building-and-renovating/building-and-construction-residential-premises) for sale, you may:

- be liable for GST on the sale ([at settlement](https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/in-detail/your-industry/property/gst-at-settlement))
- need to [register for GST](https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/in-detail/your-industry/property/gst-and-property) depending on your turnover.

If you do need to register for GST, you may also be entitled to GST credits on construction and sale costs, even if the premises have been rented for a period before being sold.

For more information, see [GST and residential property](https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/in-detail/your-industry/property/gst-and-residential-property).

## Foreign resident capital gains withholding

Foreign resident capital gains withholding (FRCGW) may apply when selling your rental property to a foreign resident.

For more information, see [Foreign resident capital gains withholding](https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/foreign-residents-and-capital-gains-tax/foreign-resident-capital-gains-withholding).


## Things that show your rental property is available

Your property is available for rent where you either have:

- a tenant renting the property
- made genuine effort to
- advertise the property in ways that give it broad exposure to possible tenants
- have conditions that are not so restrictive that tenants are likely to rent the property.

Where you rent out property or it is genuinely available for rent, you can [claim for expenses](https://www.ato.gov.au/individuals-and-families/investments-and-assets/property-and-land/residential-rental-properties/rental-expenses) you incur. There are also some [rental expenses you can't claim](https://www.ato.gov.au/individuals-and-families/investments-and-assets/property-and-land/residential-rental-properties/rental-expenses/how-to-claim-rental-expenses#ato-Expensesyoucantclaim).

## Things that show your rental property is not available

Things that may show a property isn't genuinely available for rent include:

- it's advertised in ways that limit its exposure to potential tenants – for example, the property is only advertised
- at your workplace
- by word of mouth
- on restricted social media groups
- outside annual holiday periods when the likelihood of it being rented out is very low
- the location, condition of the property, or accessibility of the property mean that it's unlikely tenants will seek to rent it
- you place unreasonable or stringent conditions on renting out the property that restrict the likelihood of the property being rented out, such as
- setting the rent above the rate of comparable properties in the area
- placing a combination of restrictions on renting out the property – for example, requiring prospective tenants to provide references for short holiday stays and having conditions like 'no children' and 'no pets'
- you refuse to rent out the property to interested people without adequate reasons.

These things generally show you:

- don't have a genuine intention to earn rental income from the property
- may have other purposes, such as using it or reserving it for personal use.

Check our examples of factors that generally indicate the [property is not genuinely available to rent](https://www.ato.gov.au/forms-and-instructions/rental-properties-2025/rental-expenses?page=4#Isthepropertygenuinelyavailableforrent).