Top Tax Deductions For Australian Property Investors

Top Tax Deductions for Australian Property Investors

Are you a property investor in Australia who is unaware of the tax deductions? Don’t worry. In this blog post, you will learn more about all the top deductions you can claim and maximise your returns. The common mistake many property investors make is that they don’t pay attention to the possible tax deductions they can claim which will save them great income. Also, the ATO at times can crack down on incorrect tax returns from rental or investment property. So, without any further delay, learn about the top tax deductions for Australian property investors.

Before we dive into the top ones, let’s first know the basics. As a property investor in Australia, you must know that you can only claim the deductions on expenses directly related to owning and managing your investment property. These expenses must be incurred to produce rental income. You cannot claim the ones which are private or domestic like your personal living expenses etc.

Top Tax Deductions for Australian Property Investors

#1 Interest on Investment Property Loans

First on our list is the interest you paid on the loan. You can easily claim this on your investment property in Australia. This interest includes loans used to purchase, renovate, or even maintain the property. You can claim it as a deduction against rental income which will reduce the amount of taxable income you have.

#2 Property Management Fees

If you have a property agent or manager to manage your investment property, then you must be paying some fees. You can claim this as a tax deduction. These fees include commission including GST, postage, bank charges, lease documents, statement fees, etc.

#3 Repairs and Maintenance

Third on the list is the repair and maintenance expenses that you make on your investment property in Australia. You can provide the work done on the investment property to maintain it. This includes expenses incurred on plumbing, electrical, and also handyman fees. You cannot claim deductions for improvements to your property such as adding a new deck or installing a swimming pool. ATO is highly vigilant in claiming these expenses described as repairs. So, make sure you file the correct one.

#4 Property Insurance 

You can easily claim the insurance premiums paid by you on your investment property. This includes building insurance, landlord insurance, content insurance, and public liability. On the contrary, you cannot claim deductions for any insurance premium related to personal use or occupancy of the property.

#5 Legal and Accounting Fees

Next comes the legal and accounting fees which can also be claimed under deductions. So when you pay any fees for managing your property and it is directly related to the rental income earned by you. Some of the examples include legal fees for making up a lease agreement, legal fees paid for disputes with tenants, accounting fees for advice on tax implications of owning a rental property, and more.


We have discussed the top tax deductions for Australian Property Investors. But all property investors should take a moment and understand their tax obligations and claim all eligible deductions. And this will benefit you as you can then maximise the return on your investment property and achieve your financial goals.

And if you find it challenging to handle all your tax deductions for your property investment in Australia, it’s time to consult KPG Taxation. It has an experienced team for managing all your tax deductions on your property investment so that you can sit back and have peace of mind!

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