What You’re Allowed To Deduct For A Rental Property

One of the reasons rental property remains a popular investment for many Australians is that it brings tax advantages. As our Tax Week 2013 coverage continues, here’s a reminder of what expenses you’re allowed to claim.

Rental picture from Shutterstock

The Australian Taxation Office has a handy overview of expenses you can claim immediately in the year they’re incurred, and those which have to be divided over a number of years. Expenses you can claim against your rental income immediately include:

  • Interest paid on loans to purchase the property (remember, only the interest is claimable);
  • Repair costs for the property;
  • Costs associated with managing the tenancy (such as preparing a lease or evicting a bad tenant)

Loan establishment fees and other associated costs typically have to be divided over a five year period, unless their total is under $100 (which is unlikely). Improvements also need to be depreciated over a number of years.

Hit the link for a more detailed overview (and, as ever, consult an accountant if you want specific advice).


The Cheapest NBN 50 Plans

Here are the cheapest plans available for Australia’s most popular NBN speed tier.

At Lifehacker, we independently select and write about stuff we love and think you'll like too. We have affiliate and advertising partnerships, which means we may collect a share of sales or other compensation from the links on this page. BTW – prices are accurate and items in stock at the time of posting.


2 responses to “What You’re Allowed To Deduct For A Rental Property”