From www.bantacs.com.au: If your home or investment property was damaged by fires, the ATO imposes specific tax implications related to insurance payouts, repairs, and rebuilds.

Homeowners can avoid tax complexities by allowing insurance companies to handle repairs, but for rental properties, distinguishing between repairs and a rebuild is crucial for CGT purposes.

Understanding the cost base calculations and the rollover relief provisions is essential to navigate potential tax liabilities effectively.