“No reason why not if your ex spouse pays market rates. There are lots of people who rent properties to their parents, in-laws, brothers & sisters without any problems with the ATO.”

Hi everyone, my first post!

What is the ATO’s definition of market rates? I rent a villa to my mother-in-law for what we might call a favourable rate. Should it ever be queried by the ATO could I justify it with the argument that the tenant enjoys the rate because she is a super tenant, clean, reliable etc etc.

Thanks for the great forum.

Don