Five Tax Deductions for your Investment

Five Tax Deductions for your Investment

Happy end of financial year eve!  Yes, apparently this is ‘a thing’ now and some people are even throwing parties for today.  What’s more interesting is that (listening to the radio this morning) people are now doing new financial year resolutions!

Aside from parties and resolutions, many of us are thinking about tax refund time and in particular, getting a decent refund due to their investment portfolio.


So for anyone that this is there first year, generally speaking here are a five deductions to remember and conside when speaking with your accountant.


Repairs and Maintenance

If you need to make good or remedy defects in the property – these are claimable.  Painting, maintenance plumbing, maintenance electrical work also falls under the banner of ‘repair’ and can also be claimed.

These (above) are all classed as work being taken out to a small section of the property – but keep in mind when you start to replace whole sections, you are now jumping into asset replacement and the expenses will not be classes as a repair.

Improvements, which are the types of work where you start replacing or changing the nature of the property, are capital expenses and you should be depreciating these over their expected life


Tenancy Costs  

Advertising costs are tax deductable, as well as letting fees.

This includes advertising with local real estate agencies and posting adverts in newspapers.

Basically any expense you have incurred preparing or varying the lease with your tenant/s is a deduction.


Holding Costs

Body corporate fees, cleaning costs, gardening, building and contents premiums, rates, security monitoring costs, pest control, property management fee’s – all generally tax deductible upfront.



By far the best deduction in negative gearing.  Provided your property is available for rent, the interest incurred on the money you have borrowed for the investment is tax-deductible.



Cover is  tax deductible and can protect against loss of rent, rent default, theft by tenant/s, building damage.   Mortgage insurance is not immediately claimable but is depreciated over time as a part of the borrowing costs.


Tip: Keep proper records in order to make the claims – even when you sell the property – rule of thumb is to keep records for 5 years since date sell your rental property.


If you need a referral to speak with one of our preferred Accountants, please contact us at (07) 3420 5888 or email at


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