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Rates on Rentals | Online Tax

November 27, 2023

Can I deduct my Rates expenses on my rental property?

Yes you can claim Council and Water Rates on your rental property.  Council and water rates are recurring expenses that property owners in Australia need to pay. These expenses are considered allowable deductions for rental properties under the Australian Taxation System.

Council rates are levied each year for the period of 1 July to 30 June. You can choose to pay your rates in a lump sum or in four equal installments due on the last day of the months of September, November, February, and May. Water rates are usually adjusted to the end of the current quarter.

Rental Example for Water Rates and Council Rates

For example, if you pay $2,000 annually for council rates and $500 for water rates, these amounts can be claimed as deductions on your tax return. This means that these expenses will reduce your taxable rental income, thereby reducing the amount of tax you need to pay.

It’s important to note that to claim these deductions, you must have actually incurred the cost. You can’t claim a deduction where the cost is paid by the tenant.

Deduction Grabber to track your Rates

Keeping track of these expenses can be a bit challenging, but with the help of the “Deduction Grabber” app, you can easily record and manage these expenses. When it’s time to file your tax return, you can visit www.gotax.com.au. It’s a user-friendly platform that makes filing your income tax return online a breeze. With all your deductions at your fingertips thanks to “Deduction Grabber”, you’ll be well-prepared to get the most out of your tax return.

Rates and rental Properties



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