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Tax Deductions for Your Rental Property

June 8, 2021

If you own a rental property, you may find that the bills start to add up. The good news is you can claim tax deductions for your rental property to decrease your taxable income which in turn decreases how much tax you have to pay.

We list the common tax deductions for your rental property that you may be able to claim on your online income tax return

For some lucky investment property owners, that may result in a tax refund, for others it may mean a bill, but at Gotax, we work hard to ensure that you don’t miss any tax deductions for your rental property.

To begin, one of the best tax deductions is a depreciation report. You can do this by having a Quantity Surveyor do a quantity surveyors report on your property. The cost for this is usually around $500-$800, but it means you may get more back in your back pocket come tax time.

In addition to this, you also have the following deductions for your rental property:

  • Council & Water Rates
  • Interest on home loans – it’s important to keep your home loan separate from other personal loans to get this tax deduction.
  • Real Estate management fees
  • Pest control
  • Smoke alarm maintenance
  • Repairs & Maintenance done to the property

Looking for an easy way to keep track of your rental property expenses?
Check out My Rental Records.
For just $10 a month or $100 for the year My Rental Records allows you to record transactions through the app or web- based system as soon as your expenses occurs.
Generate reports for your Accountant and record up to three rental properties.
The first month is free so you can give it a try before you buy.


Capital works, building construction costs, cost for altering the property and all capital improvements to surrounding property are also a tax deduction. ATO offers a 2.5% annual deduction each year for the building cost of the property but not the land.

We are Rental Property experts
If you are ever unsure on the tax deductions you can claim while completing your etax return, feel free to give us a call to speak to one of our accountants.

 

Related blogs
Negative and positive geared properties. Pt. 1
Negative and positive geared properties. Pt. 
2
Top Rental Tax Deductions you may be missing out on
Part-Rental/Air BnB Tax Returns

Note that the information provided is general in nature and subject to change, please contact one of our professionals who can evaluate your circumstances and provide more accurate advice to your current situation.

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