Are you claiming all that you should?

Through owning a investment property in which you receive an income, you are able to claim any expense associated with that income.

By deducting property expenses correctly, you can expect a higher tax refund and leave more rental income in the bank.

Every year thousands of dollars go unclaimed by investors who aren’t aware of the extra savings they could be up for. Nonetheless, it’s important you are only claiming what you are legally entitled to, ensuring you don’t get into any trouble from the ATO (Australian Tax Office).

There are a number of expenses you can claim on your next tax return. You cannot deduct your rent payments on tax unless your lease requires you to make property tax payments - only then can you deduct that portion of your rent or any property tax you pay directly.

Here’s a list of expenses you CAN claim!

  • Advertising for tenants
  • Bank charges
  • Body corporate fees
  • Cleaning
  • Council rates
  • Electricity and gas
  • Gardening and lawn mowing
  • In-house audio/video service charges
  • Insurance – building, contents, public liability
  • Interest on loans
  • Land tax
  • Legal expenses
  • Lease costs – preparation, registration, stamp duty
  • Mortgage discharge expenses 
  • Property agent’s fees and commissions
  • Capital Works
  • Quantity surveyor’s fees
  • Repairs and maintenance, Pest control
  • Secretarial and bookkeeping fees
  • Security patrol fees
  • Servicing costs e.g. servicing a water system
  • Stationery and postage
  • Telephone calls and rental
  • Tax-related expenses
  •  Travel & car expenses for: - rent collection, inspection of  property,  maintenance of property
  •  Water charges

Capital Works and Plant and Equipment

Important note: If your residential property was built after 1985 your accountant is not allowed to estimate the construction costs.

Chief Executive Officer of the Australian Institute of Quantity Surveyors (AIQS), Terry Aulich, advises that whereas accountants can offer advice around other aspects of tax depreciation, construction costs and property depreciation are highly technical domains in their own right.

Quantity surveyors are specialists in the accurate measurement of construction costs with a view to maximising a client’s financial position in relation to their property assets. Only a fully qualified quantity surveyor brings the appropriate education, experience and training to provide reliable figures upon which to base a property tax depreciation schedule. One doesn’t want to rely on best guesses when dealing with the ATO – especially when there is professional help available,” says Terry.

Helpful tips for investors

Deducing the classification of capital works allowance and plant and equipment items is an area of expertise for a tax depreciation specialist. By asking a specialist for advice on depreciation you will not only receive more when you complete your income tax return, but also have added security and information necessary if the ATO decided to conduct an audit.

If you’re looking to buy an investment property, put together a structured plan and strategy which is sure to maximise the tax benefits available. Always seek independent advice from specialists such as accountants, financiers and qualified surveyors before you purchase a property. 


Any advice here does not take into account your objectives, financial situation or needs. Terms, conditions, limits and exclusions apply.

Cathy Kershaw

Posted By Cathy Kershaw
Cathy has accumulated over 15 years experience in the real estate industry in a variety of roles. Cathy keeps our office running smoothly and ensures our agents have all the tools and up to date technology they need in order that they can focus on the needs of our clients.

Updated : 11th October 2021 | Words : 519 | Views : 1827

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