Can I claim strata fees if I live in the townhouse?

The ATO pages reviewed describe deductions for properties held to produce income and list personal expenses as not deductible. They do not describe a deduction for levies on a home the owner lives in. A registered tax agent can confirm how that applies to a particular property.

Are special levies tax deductible?

Not always immediately. The ATO says a special levy to fund a particular capital improvement cannot be claimed straight away, though capital works deductions may be available after completion. A levy for repairs or maintenance may be deductible straight away. The purpose of the work decides the treatment.

Do strata fees include GST?

The pages reviewed do not say. The levy notice and the scheme's budget show what is charged. CAV says an owners corporation must register for GST once its income, including fees, reaches $75,000 a year, although the ATO sets $150,000 for non-profit organisations. A residential landlord cannot claim GST credits whatever the position, according to the ATO.

What about the months the townhouse is vacant?

The ATO counts days the property is available for rent on commercial terms, even if no tenant is living there. Days when it is empty but not available for rent do not count. Levies are apportioned over the days that qualify.

Are strata fees tax deductible, and what about GST?

Strata, body corporate and owners corporation fees are deductible only for a property that is rented or available for rent, and the Australian Taxation Office (ATO) treats regular levies and special levies differently. The ATO pages reviewed describe no deduction for fees on a home the owner lives in, and someone leasing out residential property cannot claim GST credits on what they buy to lease it. This is general information as at October 2026, not tax advice.

The ATO sorts levies by what the money pays for, not by the name on the notice. A registered tax agent can read a levy notice and the scheme's budget against the ATO's guidance for a particular property.

Checked October 2026. Rules, rates and prices change, so confirm anything that matters with the source linked below.

Living in the townhouse

The ATO pages reviewed cover rental properties. They say an expense is deductible only if the property is held to produce assessable income, meaning it is rented or available for rent on commercial terms, and they list personal expenses as not deductible. They describe no deduction for levies on a home that the owner occupies. How a later sale is taxed, including any main residence exemption, was not reviewed for this guide.

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Rented townhouses: regular levies

The ATO says regular payments to a body corporate administration fund, or to a general purpose sinking fund, for ongoing administration and general maintenance are payments for services. They are deductible in the income year they are incurred. It lists day-to-day costs such as insurance premiums, garden maintenance and management of the body corporate. To claim, the owner must have incurred the cost, which rules out amounts the tenant or someone else pays, and must keep records.

The owner's share of those regular levies comes from the lot liability or lot entitlement set by the scheme. How much strata and body corporate fees are explains how the share is set.

Special levies and capital works

Payment	ATO treatment for a rental property
Regular payment to an administration fund	Deductible immediately
Regular payment to a general purpose sinking fund	Deductible immediately
Special levy for a particular capital improvement	Not deductible immediately. A capital works deduction may be available once the work is completed
Contribution to repairs or maintenance of common property	Deductible immediately if it relates directly to wear and tear or damage from renting the property and is a repair or maintenance, not a replacement of an entire structure or an initial repair of a defect present at purchase (the ATO's apartment building defects page)
Combustible cladding replacement	Capital works, deducted over 25 years (4% a year) or 40 years (2.5% a year)

The ATO gives capital works rates of generally 2.5% a year over 40 years or 4% a year over 25 years. They apply to a property built after 17 July 1985 that is rented or held to produce assessable income, and only once construction is fully completed. The ATO's cost base page lists capital costs incurred to increase or preserve an asset's value as part of the cost base used for capital gains tax, so a capital levy may matter again when the property is sold.

The ATO guidance is written around deductibility by purpose. It does not say how a particular Queensland sinking fund contribution is treated, and that fund can pay for capital items such as replacing fences, so a tax agent should look at what a given payment funds.

Part-year rentals

The ATO requires an owner to apportion expenses when the property is rented for only part of the year, used personally, rented below market rates or partly rented. For the time-based method, it divides the days the property produced income or was available for rent on commercial terms by the total days owned, then multiplies by the expense. Days when the property is empty but not available for rent do not count.

Worked example (hypothetical). The figures are invented. An owner pays regular levies of $1,300 a quarter, which is 4 x $1,300 = $5,200 a year. The townhouse is available for rent on commercial terms for 200 of the 365 days and lived in by the owner for the other 165 days.

Apportioned regular levies: $5,200 x 200 / 365 = $2,849.32.
The other $5,200 - $2,849.32 = $2,350.68 relates to personal use and is not deductible.

Special levy example (hypothetical). The scheme levies $3,000 to replace a shared driveway, which is a capital improvement. It is not deductible straight away. If it qualifies for capital works deductions at 2.5% over 40 years, the deduction would be $3,000 x 2.5% = $75 a year, or 40 x $75 = $3,000 in total, from when the work is completed. The year-one figure would also be apportioned if the property was not available for rent all year.

GST

Residential rent. The ATO says rent and bonds on residential property are not subject to GST, and that a person leasing residential property cannot claim GST credits for anything bought or imported to lease it. A landlord therefore cannot recover GST included in a levy.
Whether a levy includes GST. The pages reviewed do not say whether a given levy includes GST. The levy notice and budget show what the scheme charges. Consumer Affairs Victoria lists its maximum fees for owners corporation certificates without GST.
When a scheme must register. CAV says an owners corporation must register for GST once its income, including fees, reaches $75,000 in a year (its tax page says "exceeds" and its financial management page says "meets or exceeds"), and that one that is not registered cannot claim input tax credits. The ATO's registration page sets $75,000 or more for businesses and $150,000 or more for non-profit organisations. It does not mention owners corporations, so which threshold applies to a particular scheme is a question for the ATO or the scheme's tax adviser.

The scheme's own tax

CAV says owners corporations are treated as public companies for tax. Annual fees, including contributions to a maintenance fund, and special fees are mutual income, which is not assessable. Income from leasing common property, interest, certificate fees and the sale or rental of property is assessable. If the scheme earns income from common property, it must tell each lot owner their portion by 14 July, and CAV says the amount should be included in the lot owner's tax return.

Common questions

Can I claim strata fees if I live in the townhouse?: The ATO pages reviewed describe deductions for properties held to produce income and list personal expenses as not deductible. They do not describe a deduction for levies on a home the owner lives in. A registered tax agent can confirm how that applies to a particular property.
Are special levies tax deductible?: Not always immediately. The ATO says a special levy to fund a particular capital improvement cannot be claimed straight away, though capital works deductions may be available after completion. A levy for repairs or maintenance may be deductible straight away. The purpose of the work decides the treatment.
Do strata fees include GST?: The pages reviewed do not say. The levy notice and the scheme's budget show what is charged. CAV says an owners corporation must register for GST once its income, including fees, reaches $75,000 a year, although the ATO sets $150,000 for non-profit organisations. A residential landlord cannot claim GST credits whatever the position, according to the ATO.
What about the months the townhouse is vacant?: The ATO counts days the property is available for rent on commercial terms, even if no tenant is living there. Days when it is empty but not available for rent do not count. Levies are apportioned over the days that qualify.

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Sources

This is general information, not financial, tax or legal advice. Get advice that suits your situation before you buy.