More Australians have become landlords in the past few years than ever before. This is because it’s one of the innovative ways people are using to get a foothold into the property market. Secondly, it’s because people have seen real opportunity to make money in the property market which has been booming for more than a decade. And the third reason many Australians favour property as an investment is because currently our tax regime favours it too.

Tax deductions for investment properties

There are a number of tax deductions you can make if you have an investment property. The Australian Taxation Office website has a comprehensive list, but some of these deductions include:

  • Cleaning, gardening and lawn mowing bills
  • Depreciation on assets like white goods and air conditioners
  • Advertising for tenants
  • Some insurances
  • Repairs and maintenance, including servicing costs

Airbnb, holiday or short-term rental

It’s important to note that if your investment property is only available for rent for part of the year, or if you’re renting out just a single room in your home and not the entire property, then expenses need to be apportioned accordingly and deductions made appropriately. It can get complicated, but there are some good resources on the ATO website.

Get professional advice

The best thing to do is to get professional advice from a tax agent or an accountant and keep all receipts and related documents so you can prove expenditure if you get audited.

We work with some well respected tax agents and accountants so if you’d like a recommendation, send us an email or call us on 02 9518 5728.