The laws for landlords of residential property regarding asbestos are different across Australia. Landlords must ensure that work carried out at their property is done safely. A body corporate must ensure that asbestos risk in common areas is minimised.
Disclosure of asbestos in residential property
Landlords of residential properties across Australia are obligated to ensure the safety of the home they are renting out. In some states and territories landlords must disclose the presence of hazards or risks, including asbestos, to renters.
In all states and territories, real estate agents or property managers are legally obligated to not provide false or misleading information. If a renter asks about the presence of asbestos in a property, a real estate agent or property manager must disclose that information if known to them.
Our Disclosure of asbestos in residential property – information for landlords and renters fact sheet outlines the state and territory disclosure requirements for residential rental properties.
Ensuring residential properties are safe
Landlords need to monitor the condition of asbestos materials and advise renters on how to stay safe. Landlords must also ensure that when work is carried out at their property, it is done safely and that workers or others, including renters, are not exposed to dangerous asbestos fibres.
When a property changes hands or new residents move in, it’s a good time to check where asbestos materials are located, assess their condition, and where possible, plan for safe removal.
Asbestos in body corporate common areas
A body corporate is responsible for maintenance and management of common property areas. This includes managing asbestos risks.
If a body corporate hires a professional tradesperson, like a plumber, electrician, or carpenter, it is considered a Person Conducting a Business or Undertaking (PCBU) and specific work health and safety (WHS) laws apply.
Where common areas were built before 31 December 2003 these duties may also include:
- the preparation, maintenance and review of an asbestos register and asbestos management plan
- ensuring that the asbestos register and management plan are readily accessible to any worker or contractor who carries out work at the property
- ensuring the safe management, removal, transport and disposal of asbestos
If the body corporate is not a PCBU then they will be responsible for:
- removal of friable or bonded asbestos containing material (ACM)
- taking reasonable measures to minimise the release of asbestos fibres
- cleaning or cutting ACM (prohibiting the use of power tools, high pressure water cleaners and compressed air cleaning)
- sealing bonded ACM if broken
- packaging and disposal of associated asbestos waste.
The body corporate should also ensure that any asbestos removalist engaged holds a current asbestos removal licence suitable for the type of asbestos being removed.
Tax deductions for asbestos testing, removal and disposal
In July 2020, the Australian Taxation Office (ATO) published the taxation ruling (TR 2020/2) allowing income tax deductions for expenditure on ‘environmental protection activities’.
This means if you own a property that provides you with an income, for example commercial or rental properties, some asbestos activities may be claimed as a tax-deductible expense.
The activities are:
- testing where asbestos is suspected (even if asbestos is not found)
- engaging a licenced asbestos removalist to remove and dispose of asbestos (including fences and sheds)
- replacing removed materials, only where this results in a minor degree of alteration and improvement.
Our Tax ruling Fact Sheet fact sheet outlines this tax ruling in more detail with examples of how it can be used in relation to asbestos.
