Item 9 - Rent 2025

Complete the rental schedule (BR) if the partnership owns property that it rents out.

You must:

lodge a Rental schedule (BR) when the partnership earns rental income or loss.
distribute any net rental income or loss to the partners.

You can't distribute all the income or loss to one partner.

Rental property worksheet example

The Rental property worksheet (rep) is a Tax only worksheet.

The rep contains non-ATO fields and columns needed by AE/AO Tax for the allocation of income and expenses.

These added fields and columns are not transmitted to the ATO or printed for the client. Instead, the ATO and the client print-out contain only the ATO fields and labels.

When shared to the partners' returns, we transfer a copy of the rep to the other partner or partners. The partner must then include that income in their own income tax return.

When completed we convert the rep to the ATO's Rental schedule (BR) format.

Property details example

We colour mandatory fields yellow. You must complete them.

If the property wasn't rented at all, leave the Rented from–to field blank.

If you don't enter the Rented from–to dates:

a zero is pre-filled at the Number of weeks property was rented this year field, and
52 weeks defaults to the Number of weeks property was available for rent this year.

Entering from–to dates triggers auto-calculation of the number of weeks.

Income example

We've provided some non-ATO supplementary income fields. Entered amounts are totalled and shown at label B: Other rental related income.

These supplementary fields are for record keeping purposes only and aren't transmitted to the ATO.

Press Alt+S to open dissection grids.

Expenses example

If the partners used the property for a private purpose during the year:
–enter a default private use percentage (PU %) and we'll apply to all expenses expenses.

If private use applies to individual expenses only
–leave the PU % field empty. Then enter the PU % against those particular expenses.

Press Alt+S to open dissection grids.

Some grids have a link to other worksheets. For example:

depreciation deductions from the depreciation worksheet (d)
capital building allowance deduction from the sbw worksheet, and
motor vehicle expenses from the mve worksheet.

Column behaviour

Gross amount	Is the total amount expended by the partnership for that expense.
Share	Where the field is greyed-out, the Share is auto-calculated when when you press the Share button. Note that the share for the Partnership is always 100%. The net income or loss must be distributed to the Partners in their respective share in the partnership at item 51: Statement of distribution.
Pte use %	If you've defaulted a PU %, we close this column of fields to edit. Otherwise, enter the PU % for the relevant expense.
Priv amount	Is calculated automatically if you've entered a PU%.
Net amount	Is the sum of the: Share less PU %

Build to rent capital works deduction at 4%

This is a new label in 2025.

The Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Act 2024External Link and Capital Works (Build to Rent Misuse Tax) Act 2024External Link provide tax incentives to increase the supply of housing. From 1 January 2025, the incentives give owners and investors in eligible build-to-rent developments access to:

An accelerated deduction of 4% for capital works relating to build-to-rent developments
a concessional final withholding tax rate of 15% on eligible fund payments (amounts referable to rental income and capital gains from the build-to-rent development).

To be an eligible build-to-rent development that the owner can choose to be subject to the incentives, the Australian development will have:

at least 50 dwellings for rent to the public with a lease term offer of at least 5 years
at least 10% of the dwellings as affordable dwellings
a single owner.

Additionally, for the capital works deduction at the 4% depreciation rate, the construction of the build-to-rent development must have commenced after 7:30 pm AEDT on 9 May 2023.

For an eligible development to access the tax incentives, its owner must make a choice to access the incentives. The owner must notify the Commissioner of Taxation (the Commissioner) in the approved form.

All eligibility conditions must be met for a minimum period of 15 years.

If the conditions aren't met while accessing the concessions, we may issue a Build to rent development misuse tax notice of assessment to the owner of the development. We will use this new tax to clawback the incentives during the relevant period. A deduction cannot be claimed for misuse tax paid.

Trusts reflect the capital works deduction at the 4% depreciation rate by including the deduction amount for the period in the income year that the 4% rate applies at Item 9 Rent:

label X Capital works deduction
label Y Build to rent capital works deduction at 4%.

Sharing of income and expenses

Don't share income to the partners here. Do that in the Statement of Distribution at item 51.

For partnerships, the share % in this worksheet is set at 100%.

Clicking the Share button completes the expenses share column. Closing the schedule filters the totals through to the item 9: labels F, G, X and H.

The statement of distribution

The rental income or loss must be fully distributed to the partners in accordance with their share in the partnership.

If all the partners’ returns are handled by the practice, then the distribution will be to each of their individual returns in your tax database.

If you don't act for all the partners, distribution will still occur and a distribution statement prepared for that partner. You can print the distribution statement to pass on another tax agent..

The ATO cross-matches the partners’ returns to the partnership return income or loss. This means that you should lodge the partner's returns at the same time as the partnership return.