What Items Are Tax Deductible In Australia for Investment Property Owners?


Tax Deductible Items in Australia

It’s important for Australian property owners to know what items are tax deductible. It’s just one of those things where taking the time to understand can save you money. After all, if you don’t claim deductions that you have a right to, it’s the equivalent of leaving money on the table or throwing your money away. Of course, the deductions that you can claim will depend on the details of your particular circumstances. It’s always best to seek professional advice if you have any doubts, or if you have certain questions that you would like answered. However, perhaps some examples might be helpful. For instance, here are some deductions which may be applicable to people whose have a property that they rent out.


Tax Deductible Items for Investment Property Owners

Finding People to Rent

Some of the things that are tax deductible in this example, relate to the costs of finding people to rent your property. Now what are some of these costs? If you put an ad in a local paper, advertising the property that you have for rent, then you can claim that as a deduction. The same is true if you pay to advertise using other kinds of media. If you make use of particular stationery for communicating with potential or existing clients, then that cost can be claimed as a deduction as well. The amount that you pay for postage when you send out materials can also be claimed as a deduction.

Maintaining Your Property

Other things which are tax deductible are tied to the costs that you may incur in order to ensure that your property or properties are in good condition. If you are the party who is paying the water bills, electric bills, gas bills and other utility bills, then these can be claimed as deductions. If you engage the services of cleaning professionals in order to keep your property tidy, then this can be deducted as well. If you provide the materials that the cleaners use, these can be deducted also. If your property has a garden or yard that needs to be maintained by a gardener, then the costs of mowing lawns, keeping the plants fertilized and so on, can also be deducted.

Borrowing Costs

If running your property requires you to borrow funds from a creditor, then it’s also important to know that the costs associated with this borrowing are tax deductible. If you need to pay for a title search, that cost can be claimed as a deduction. You might need to pay someone to prepare mortgage documents and other similar paperwork. Those costs can be deducted as well. Other related fees such as having to pay for mortgage insurance or paying the fees of a broker can also be deducted.

Legal Fees

Another important cost that is also tax deductible involves legal fees. This is particularly relevant because it’s rather likely that one will eventually need to hire a lawyer to evict a deadbeat tenant. The associated legal expenses here can be deducted. You may also need to bring in some legal help in order to end a lease. Again, this particular legal fee can be claimed as a deduction. These are only some of the many possible deductions out there. Again, the best thing to do is to seek advice that is tailored to your particular circumstances.

NSW Mortgage Corp is a leading mortgage specialist in Australia. If you are interested in purchasing an investment property, please visit our home loans page or call us on 1300 137 778 now!

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