Rental property owners

The ATO is focusing on property expense claims for investment properties this financial year, in particular, the following areas:

  • Claiming interest on a loan to purchase a rental property is an allowable tax deduction however you cannot claim the use of the loan money for personal expenses, e.g. going on a holiday or general living expenses.
  • The costs of travelling to their rental property is NOT a claimable tax deduction unless the taxpayer is in the business of letting rental properties.
  • Improvements or renovations are categorised as capital works and are deductible over a number of years. Repairs or maintenance to restore something that’s broken, damaged or deteriorating are deductible immediately.
  • The rental property needs to be genuinely available for rent. You cannot claim expenses during periods where the property is used by family or friends. Properties need to be rented out or be genuinely available for rent to claim a deduction.

Make sure you aren’t caught out with your deductions, please contact us with any queries.


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