The Top Five Tax Deductions for Property Investors in Australia

Alice Lau

The latest statistics released from the Australian Taxation Office reveal how much investors – just like you – claim at tax time. BMT Tax Depreciation has analysed the data and found the top five tax deductions for property investors in Australia.

1. Interest Repayments


There’s no surprise that interest repayments sit at the top of the list. A mortgage is a big commitment and interest repayments rack up thousands of dollars.

Even though interest repayments are an ongoing expense, they can be claimed as a yearly deduction. Depending on the size of the loan and interest rates. This can produce thousands of dollars in deductions each year.

2. Property Depreciation

Property depreciation is the second-highest deduction for investors across the country. Depreciation can be claimed on both the structural component of the investment property (capital works) and on the easily removable assets (plant and equipment).

Depreciation is unique to any other deduction as it’s a non-cash deduction. This means you don’t need to spend any money to claim it.

3. Body Corporate Fees

Investment properties in strata complexes are popular choices among investors as they are easy to maintain.

Body corporate fees are often a compulsory part of owning a property within a strata. These fees cover everything from building insurance, common area maintenance, and building repairs.

However, unlike the owner-occupied properties within the strata, you can claim all body corporate fees as a tax deduction each year.

4. Land Tax

This tax applies to every property in the country. The amount of tax payable is dependant on the value of the land, as well as State or Territory it’s located in.

As land tax is usually paid at the end of the calendar year, always record it for tax time.

5. Property Agency Fees

We all know that when an investment property is managed by a professional, your life is made easier. While you might be hesitant to fork out the extra cash for a property manager, it’s important to remember that any fees associated with property management are 100% tax-deductible.

This includes all fees charged by your property management agency including advertising, inspection costs, finding tenants, and more.

BMT Tax Depreciation is Australia’s leading supplier of residential and commercial tax depreciation schedules.

Bradley Beer (B. Con. Mgt, AAIQS, MRICS, AVAA) is the Chief Executive Officer of BMT Tax Depreciation.  Please contact 1300 728 726 or visit bmtqs.com.au for  Australia-wide service.

More Blogs

Back to Posts