Rental property deductions
Expenses an investor can claim against rental income, such as loan interest, rates, insurance, repairs and property management fees.
- Claimed in the year the expense is incurred
- Capital costs are treated differently from running costs
- The ATO closely reviews rental claims
What can usually be claimed
Interest on the investment loan, council and water rates, landlord insurance, strata levies, property management fees, repairs and maintenance, and depreciation.
What usually cannot
Purchase costs such as stamp duty and buyer's agent fees, and initial repairs to defects that existed at purchase. These are generally capital costs.
Keep every receipt and use a property manager's annual statement. Rules can change, so have an accountant prepare your return.
Common questions
Can I claim travel to inspect my rental?
Generally no, for residential rental property.
Is a renovation a repair?
Usually not. Improvements are capital works, claimed over time.
Related terms
Sources
General information only. It does not consider your objectives, financial situation or needs, and is not financial, credit, tax or legal advice. Rules change, so check current law and get advice from a licensed professional before acting.