Owning an investment property in Australia can be a smart way to build wealth — and maximising your tax deductions is key to getting the most out of your investment. Many landlords miss out on valuable deductions simply because they’re unaware of what they can claim. Here’s a breakdown of the top tax deductions available to Australian investment property owners.
1. Loan Interest
One of the most significant deductions is the interest charged on your investment property loan. This applies only to the interest portion, not the principal repayments.
Tip: Make sure the loan is used solely for investment purposes, as mixed-use loans can complicate claims.
2. Property Management Fees
If you use a real estate agent to manage your property, their fees — including advertising, inspections, and admin costs — are fully deductible.
Tip: Even online listing fees and tenant screening services can be claimed.
3. Repairs and Maintenance
Immediate deductions can be claimed for repairs and maintenance directly related to wear and tear from tenant use, such as fixing a broken tap or replacing a damaged fence.
Tip: Be cautious — improvements or renovations are considered capital works and must be depreciated over time.
4. Depreciation
Depreciation can be claimed on the building structure (capital works) and on eligible fixtures and fittings (plant and equipment), such as carpets, appliances, and air conditioners.
Tip: A professional quantity surveyor’s depreciation schedule can help maximise your claim over time.
5. Council Rates, Insurance & Utilities
Council rates, water charges (if paid by the landlord), strata fees, and landlord insurance premiums are all deductible.
Tip: Always keep detailed records and invoices to support your claims.
Get the Most from Your Investment
Proper tax planning can turn an average investment into a high-performing one. At Accounting Tax Solutions, we help property investors understand their entitlements, stay compliant, and reduce tax liabilities legally and effectively.
Own an investment property? Contact Accounting Tax Solutions today and let us help you unlock the full potential of your tax deductions.