Do I Have to Declare Rental Income in 2026?

Yes. If you received rental income during the 2026 financial year, you generally need to declare it in your tax return.

That includes rent paid directly to you.

It also includes rent paid to your property manager or agent on your behalf.

In other words, the income does not become invisible just because the agent touched it first.

Nice try.

No.

GoTax helps Australian rental property owners complete tax returns online, with returns checked by registered tax agents before lodgement.

Start your rental property tax return online with GoTax

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What counts as rental income?

Rental income is not just the amount that lands in your personal bank account.

Rental income may include:

• rent paid by tenants

• rent paid to your property manager

• short-term accommodation income

• Airbnb or holiday rental income

• insurance payouts for lost rent

• tenant reimbursements

• bond money you are entitled to keep

• booking fees

• letting fees

• payments for utilities or other costs

• overseas rental income

• compensation connected to rental use

The key point is simple:

If it relates to renting out the property, check whether it needs to be declared.

Do not just rely on the net amount transferred to your bank.

That number may already have agent fees, repairs, water bills or other expenses taken out.

Your tax return needs the full story, not just the amount left over after the property manager has had a rummage through it.

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Rent paid to your property manager still counts

This is one of the most common misunderstandings.

If your tenant pays rent to your property manager, that rent is still your rental income.

It does not matter that the agent later deducts fees and transfers a smaller amount to you.

Example:

Item	Amount
Rent paid by tenant to property manager	$26,000
Agent fees and expenses deducted	$3,500
Net amount transferred to owner	$22,500

The rental income is not simply $22,500.

The gross rent needs to be considered, and the expenses need to be recorded separately.

That is why the annual property manager statement matters.

It helps show the income and the expenses.

It is not just a nice PDF to ignore until 31 October.

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What if the property was rented for only part of the year?

You still need to declare the rental income received for the period the property was rented.

This can happen where:

• the property was purchased during the year

• the property was first rented part-way through the year

• the tenant moved out

• the property was vacant between tenants

• the property was sold during the year

• the property changed from your home to a rental

• the property changed from rental to private use

• the property was only available seasonally

You may also need to apportion expenses.

For example, if the property was only rented or genuinely available for rent for part of the year, not every full-year cost may be fully deductible.

Tax loves dates.

Settlement date.
First available date.
First rented date.
Vacancy dates.
Private-use dates.

The calendar can become more useful than your memory.

Which is unfortunate, because the calendar is usually less optimistic.

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What if the property was vacant?

A vacant property does not automatically mean no deductions.

But it needs to be genuinely available for rent.

The issue is whether the property was genuinely being held out for tenants, not just sitting empty.

Things to consider include:

• was it advertised for rent?

• was the rent commercially realistic?

• was it available to tenants?

• were there unreasonable conditions?

• was it ready to rent?

• was it being repaired between tenants?

• was it blocked for private use?

• was it a holiday home used by family?

• was it only available at unpopular times?

A normal vacancy between tenants may be fine.

A beach house blocked out for family use during peak holidays is different.

The ATO has seen calendars before.

Usually more than once.

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What about Airbnb and short-term rentals?

Airbnb, Stayz and other short-term rental income generally need to be considered in your tax return.

This may include:

• nightly rental income

• cleaning fees charged to guests

• booking platform income

• cancellation fees

• guest reimbursements

• payments received through the platform

• direct guest payments

Short-term rentals often need more careful apportionment than long-term rentals.

Why?

Because there may be:

• private use

• family use

• friends staying cheaply or free

• blocked-out dates

• mixed holiday and rental use

• non-commercial rental periods

• cleaning and linen costs

• platform fees

• property manager fees

• higher maintenance costs

If the property is partly private and partly rented, the tax return needs to split the income and expenses properly.

“Airbnb sometimes” is not a calculation.

It is barely a description.

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What about bond money?

Bond money is not always rental income.

If a tenant bond is simply held and later returned to the tenant, it is not usually rent.

But if you become entitled to keep some or all of the bond, that amount may need to be considered.

For example, bond money kept for:

• unpaid rent

• tenant damage

• cleaning

• repairs

• replacement costs

The tax treatment may depend on what the amount relates to.

If bond money is kept for unpaid rent, it may be rental income.

If it relates to repairs or damage, the matching expense treatment also needs to be considered.

Bond money is not automatically tax-free because it came through a different door.

The tax office is rather good at checking doors.

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What about insurance payouts?

Insurance payouts connected to your rental property may need to be declared.

Examples may include:

• lost rent insurance

• compensation for rental income

• tenant default cover

• damage payouts

• other rental-related insurance payments

The treatment can depend on what the payout is for.

If the payout replaces rental income, it may need to be included as income.

If the payout relates to damage or repairs, the expense and capital treatment may need checking.

Insurance payouts are one of those areas where the words on the document matter.

“Loss of rent” and “building damage” are not the same thing.

Tax returns enjoy these distinctions.

Normal people less so.

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What about tenant reimbursements?

Tenant reimbursements may also need to be included.

Examples include tenants reimbursing you for:

• water usage

• repairs

• damage

• utilities

• cleaning

• other property costs

If a tenant pays you an amount connected to the rental property, check whether it needs to be included.

Do not just net everything off in your head.

The tax return should show income and expenses in the right place.

Mental arithmetic is fine for choosing pizza.

Less ideal for rental schedules.

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Co-owned rental properties

If you co-own a rental property, the income usually needs to be split according to ownership percentage.

For example:

Ownership	Rental income split
50/50 owners	Usually 50/50
70/30 owners	Usually 70/30
Joint tenants	Usually equal shares
Tenants in common	Usually based on legal ownership percentage

Do not split the rental income based only on who paid the mortgage or who wants the better tax result.

The legal ownership matters.

Household negotiations do not usually beat the title deed.

Annoying for household negotiations.

Very useful for tax.

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Overseas rental income

If you are an Australian tax resident and receive rental income from an overseas property, that income may also need to be declared in Australia.

You may also need to consider:

• foreign tax paid

• exchange rates

• overseas expenses

• ownership records

• rental statements

• property manager records

• foreign tax documents

Foreign rental income can be more complicated, so keep strong records.

A foreign property is still a property.

The ocean between you and the property does not make the rent invisible.

Tax law has maps.

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What rental expenses can reduce the income?

Rental expenses may reduce the taxable rental result, but they need to be handled properly.

Common expenses may include:

• property manager fees

• advertising for tenants

• council rates

• water rates

• insurance

• body corporate fees

• loan interest

• repairs

• maintenance

• pest control

• cleaning

• gardening

• bank fees

• borrowing expenses

• depreciation

• capital works deductions

• tax agent fees

But expenses are not all treated the same way.

Some may be claimed immediately.

Some may need to be claimed over time.

Some may need to be apportioned.

Some may not be deductible at all.

A rental property tax return is not just income minus every bill with a house-shaped feeling.

That would be simpler.

Also wrong.

For the full overview, read: Rental Property Tax Return 2026: Complete Guide

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Common mistakes when declaring rental income

Avoid these:

Mistake	Why it matters
Declaring only the net amount received from the agent	Gross rent may need to be declared
Forgetting rent paid to the property manager	Agent-paid rent still counts
Leaving out Airbnb income	Short-term rental income counts
Ignoring tenant reimbursements	These may need to be included
Forgetting insurance payouts	Some payouts may be income
Not declaring bond money kept	It may need to be considered
Splitting income incorrectly between co-owners	Ownership percentage usually matters
Ignoring overseas rental income	Australian tax residents may need to declare it
Treating vacant property expenses too generously	Property must be genuinely available for rent
Keeping no records	Weakens the return

Rental income mistakes are often not dramatic.

They are usually boring.

Unfortunately, boring mistakes still count.

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What records should you keep?

You should keep records showing rental income and rental expenses.

Useful records include:

• property manager annual statement

• monthly rental statements

• lease agreement

• bank statements

• rent receipts

• Airbnb or platform statements

• insurance payout documents

• bond documents

• tenant reimbursement records

• invoices

• receipts

• council rates

• water rates

• body corporate statements

• loan interest summary

• repair invoices

• maintenance invoices

• depreciation schedule

• records showing vacancy periods

• records showing private use

• ownership records

• settlement statement if bought or sold during the year

Good records make the return easier.

Bad records make everyone guess.

Guessing is not the premium version of tax.

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What if you forgot to declare rental income?

Do not ignore it.

If you forgot to declare rental income, the right action depends on whether the return has already been lodged.

If the return has not been lodged, fix it before lodging.

If the return has already been lodged, you may need to amend the return.

The longer it is left, the messier it can become.

This is especially true if the ATO already has matching information or later asks questions.

A missing rental schedule is not like a missing sock.

It usually comes back.

And it brings paperwork.

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How GoTax helps rental property owners

GoTax helps rental property owners complete tax returns online.

The system prompts you through rental income and expense areas, and your return is checked by registered tax agents before lodgement.

That can help with:

• rent received

• property manager statements

• short-term rental income

• loan interest

• repairs

• ownership splits

• private-use adjustments

• vacant periods

• records

• rental expense categories

• common ATO traps

GoTax rental property tax returns start at:

$109 for one rental property

Additional rental properties are:

$40 per additional rental property

Start your rental property tax return online with GoTax

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Quick checklist before lodging

Before lodging, check:

• Did you include all rent received?

• Did you include rent paid to the property manager?

• Did you include Airbnb or short-term rental income?

• Did you include tenant reimbursements?

• Did you check bond money kept?

• Did you check insurance payouts?

• Did you split income correctly between owners?

• Did you include overseas rental income, if relevant?

• Did you keep the property manager statement?

• Did you include records for vacant periods?

• Did you keep expense records?

• Did you use the right GoTax rental return?

If the answer is “I think so”, pause.

Rental income is easier to fix before lodgement than after the ATO asks.

Funny how many things are.

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Frequently asked questions

Do I have to declare rental income in 2026?

Yes. If you received rental income during the 2026 financial year, it generally needs to be included in your tax return.

Does rent paid to my property manager count?

Yes. Rent paid to your property manager or agent on your behalf is still rental income.

Do I declare the gross rent or the net amount transferred to me?

You generally need to consider the gross rent, with deductible expenses recorded separately. Do not rely only on the net amount transferred to your bank.

Do I need to declare Airbnb income?

Yes. Short-term rental income from Airbnb, Stayz or similar platforms generally needs to be considered in your tax return.

Do I need to declare rent if the property was only rented part-year?

Yes. You generally declare rental income received during the year, even if the property was rented for only part of the year.

What if my rental property was vacant?

You may still need to declare income received during the year. Expenses for vacant periods may depend on whether the property was genuinely available for rent.

Is bond money rental income?

Not always. Bond money returned to the tenant is usually different from bond money you become entitled to keep. Amounts kept may need to be considered.

Can rental expenses reduce my taxable income?

Yes, allowable rental expenses may reduce your rental income, but private use, capital costs and unsupported expenses need careful treatment.

Can GoTax help with rental income?

Yes. GoTax helps Australians complete rental property tax returns online, with returns checked by registered tax agents before lodgement.

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About the Author

Written by Mark Walmsley, Chartered Accountant and Registered Tax Agent.

GoTax helps Australians complete their tax returns online, with returns checked by registered tax agents before lodgement.

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General Information Disclaimer

This article provides general information only and does not take into account your personal circumstances. Tax law can change and rental income treatment depends on your income, property use, ownership, records, expenses, private use and specific facts. If you are unsure, seek advice from a registered tax agent.