Find out if your expense is tax deductible in Australia in 10 seconds. ATO-compliant answers for rental properties, businesses, and investments.
Free tool · No signup required · Based on ATO guidelines 2024-25
If you own an investment property in Australia, understanding what expenses you can claim is crucial for maximizing your tax return. Here's a comprehensive guide to rental property tax deductions.
Fixing broken items, repainting, pest control, and general upkeep. Must be repairs (restoring to original condition), not improvements.
Agent fees, letting fees, and advertising costs for finding tenants.
Interest on loans used to purchase or improve the rental property. One of the biggest deductions for property investors.
Landlord insurance, building insurance, contents insurance, and public liability insurance.
Rates and levies for the period the property is rented or available for rent.
Regular maintenance including mowing, trimming, and basic landscaping upkeep.
Kitchen upgrades, bathroom renovations, adding a deck. Claim 2.5% per year over 40 years as capital works deductions.
Appliances, carpets, blinds, hot water systems. Get a depreciation schedule from a quantity surveyor.
Running a business? Here are the most common tax-deductible business expenses and how to claim them correctly.
Items under $300: immediate deduction. Items over $300: depreciate over time. Includes computers, furniture, stationery.
Deduct business-use portion only. Keep logbook for 12 weeks or use cents per km method ($0.88/km for 2024-25, max 5,000km).
Running expenses (electricity, internet): 67 cents per hour or actual costs based on floor area. Occupancy expenses if dedicated home office.
Travel meals: 50% deductible. Client entertainment: check FBT rules. Keep records of who attended and business purpose.
Yes, lawn mowing and garden maintenance are 100% deductible as ongoing maintenance expenses for rental properties. Keep invoices from lawn care services or claim equipment depreciation if you do it yourself.
Yes, property management fees and real estate agent commissions are fully deductible. This includes ongoing management fees (usually a percentage of rent), advertising for tenants, and letting fees.
Yes, interest on loans used to purchase or improve rental properties is fully deductible. This is often one of the largest deductions for property investors. Keep loans separate from personal expenses.
Repairs (immediately deductible): Fixing broken items, replacing like-for-like. Renovations (capital expenses): Improving or upgrading beyond original condition. Renovations must be depreciated over time, while repairs can be claimed in full in the year incurred.
You can use the fixed rate method (67 cents per hour worked from home) or calculate actual costs based on floor area. If you have a dedicated home office, you may also claim occupancy expenses like rent and interest.