Tax Deductions – Rental Properties

Did you know how many expenses you can claim if you own a rental property?

Many people are unaware of the full range of deductions available to them – and they miss out on a bigger tax refund.

To ensure you are making a correct claim on your next tax return, we’ve listed 27 items that you should keep a record of:

“How does it work?”

If you own a rental property that you receive an income from, you can claim any expense associated with earning that income.

For example: if you pay insurance on your rental property, this is considered an expense you incur to earn income from the property. If you did not own the property you would not incur the expense.

If you pre-pay a rental property expense, such as insurance, that covers a period of 12 months or less, and the period ends on or before June 30, you can claim an immediate deduction. A prepayment that does not meet these two criteria and is $1,000 or more may have to be spread out over two or more years.

1.Advertising for tenants

2.Bank charges

3.Body corporate fees


5.Council rates

6.Electricity and gas

7.Gardening and lawn mowing

8.In-house audio/video service charges

9.Insurance – building, contents, public liability

10.Interest on loans

11.Land tax

12.Legal expenses

13.Lease costs – preparation, registration, stamp duty

14.Mortgage discharge expenses

15.Pest control

16.Property agent’s fees and commissions

17.Capital Works

18.Quantity surveyor’s fees

19.Repairs and maintenance

20.Secretarial and bookkeeping fees

21.Security patrol fees

22.Servicing costs e.g. servicing a water system

23.Stationery and postage

24.Telephone calls and rental

25.Tax-related expenses

26.Travel and car expenses – rent collection, inspection of property, maintenance of property

27.Water charges


For more information or for help with your tax return, contact your Etax Local Accountant

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