Can You Claim Rental Property Travel in 2025-26?
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Primary tax-year context: 2025-26
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General information only. Speak with a registered tax agent for advice.
Since 1 July 2017, residential rental property owners in Australia can no longer claim travel expenses to inspect, maintain, or collect rent from their properties. This was one of the most significant changes to rental property taxation in recent decades, and the ATO continues to see it misapplied — particularly by investors who have been claiming travel for years and have not updated their returns.
The 2017 rule change: what happened and why
The travel expense ban was announced in the 2017-18 Federal Budget and is now law under section 26-31 of the Income Tax Assessment Act 1997 (ITAA 1997). The measure was introduced to address concerns that investors were claiming personal travel as a deductible rental expense — for example, combining an inspection visit with a holiday and claiming the full airfare.
Before 1 July 2017, you could claim the cost of travelling to your rental property to inspect it, collect rent, or carry out maintenance — provided you kept records and apportioned any private component. That entitlement no longer exists for residential rental properties.
The ban is broad. It covers:
- Flights, petrol, and public transport to travel to the property
- Accommodation costs incurred on an inspection trip
- Vehicle running costs for driving to and from the property
- Any other travel cost connected with inspecting, maintaining, or managing a residential rental
Who can still claim: the exceptions
The ban applies specifically to residential rental property. There are some situations where travel deductions remain available:
| Situation | Travel deductible? | Notes |
|---|---|---|
| Residential rental property — owner travelling to inspect | No | Banned since 1 July 2017 |
| Residential rental — owner travelling to collect rent | No | Banned since 1 July 2017 |
| Commercial property (office, industrial, retail) | Yes | Section 26-31 does not apply to commercial |
| Body corporate duties (if you serve on committee) | Potentially yes | Must be for body corporate activities, not personal property management |
| Property investor who is also a property manager by profession | Potentially yes | Where travel is inherently part of a business, not just a private investment |
| Registered tax agent travelling to a client’s property | Yes | Business expense, not a rental deduction |
If you own commercial property — a shop, office, or warehouse — the 2017 ban does not apply and you can still claim travel expenses incurred in deriving rental income from that property, subject to the usual apportionment and substantiation rules.
What IS still deductible: property manager fees
If you engage a property manager, their cost of visiting the property on your behalf is covered within their management fee — which is fully deductible to you. This is the intended substitute for owner travel deductions.
A property manager typically charges 5–10% of gross rent collected as an ongoing management fee, plus letting fees for placing new tenants. All of this is an immediate deduction. Their travel to carry out inspections, maintenance coordination, and rent collection is their business expense, not yours — and it doesn’t affect your deductibility of their fees.
ATO data matching
The ATO uses extensive data-matching to identify mismatched rental claims. Airline booking data, credit card records, and rental schedules are cross-referenced. If your tax return shows both rental property income and a travel deduction that appears to relate to that property, it increases your risk of review. The ATO has stated publicly that disallowed travel claims are a frequent finding in rental property audits.
Substantiation requirements (if travel IS deductible)
If you own commercial property and travel is genuinely deductible, you still need to meet standard substantiation rules:
- Receipts or invoices for all travel expenses over $10
- A travel diary if the trip involved both business and private purposes and lasted more than five consecutive nights
- Clear records showing the connection between the travel and the income-producing activity
Worked example
David owns a two-bedroom unit in Brisbane worth $520,000. He lives in Sydney and has owned the property since 2014.
Before 1 July 2017: David flew to Brisbane twice a year to inspect the property and address maintenance. Each return flight cost around $400, and he claimed $800/year in travel expenses.
From 1 July 2017 onwards: David can no longer claim those flights. He has engaged a property manager who charges 7.7% of gross rent. With the property renting at $450/week ($23,400/year), the management fee is approximately $1,800/year — and that full amount is deductible.
The net result: David loses the $800 travel deduction but gains a larger, fully deductible management fee. The property is also better managed with regular professional inspections rather than two owner visits per year.
What if David flies to Brisbane and inspects the property anyway? That is allowed — but the cost is not deductible, regardless of whether the trip has any private component. He simply cannot claim airfares or accommodation against his rental income.
Common mistakes
- Claiming flights to an Airbnb-listed property. The ban applies to all residential rental properties — short-term rentals on Airbnb, Stayz, and similar platforms are included. The nature of the rental arrangement does not change the rule.
- Claiming travel when an agent accompanied you. Whether you inspect alone or with a property manager or selling agent, the cost of your travel is not deductible.
- Claiming a portion of a mixed trip. Before 2017, you could claim the rental-related portion of a mixed business/personal trip. That no longer applies to residential rental travel — the rule is a flat prohibition, not an apportionment rule.
- Claiming vehicle costs for local inspections. The ban covers all travel, including short local trips. If you drive across town to check on your investment property, that petrol or cents-per-kilometre cost is not deductible.
Key takeaways
- Residential rental property travel has been non-deductible since 1 July 2017 under section 26-31 ITAA 1997 — this applies regardless of how far you travel or why.
- The ban covers all travel costs: flights, accommodation, petrol, public transport, and vehicle running expenses.
- Commercial property is not affected — if you own and rent commercial premises, travel expenses remain deductible subject to normal substantiation rules.
- The practical substitute is a professional property manager: their fees (typically 5–10% of rent) are fully deductible and their travel to inspect the property is their cost, not yours.
Sources
- ATO: Travel expenses — rental properties
- ATO: Rental expenses you can claim
- ATO: Common property expenses
- Income Tax Assessment Act 1997, section 26-31
Next step
- Forecast after-tax outcomes with the Investment Property Calculator
- Check disposal impact in the CGT Calculator