Investment Property Tax Tips: Claiming Expenses

Claim More, Pay Less: 2025 Investment Property Tax Tips

If you own an investment property, you may be missing out on valuable tax deductions. The rules around what you can claim are complex—and they vary depending on your situation. Here’s what every property investor should know this financial year.

What Are Investment Property Expenses?

These are the ongoing costs of owning and maintaining a rental property. Common examples include:

• Property management fees
• Repairs and maintenance
• Insurance
• Interest on the investment loan
• Council and water rates
• Depreciation of fittings and construction
• Advertising for tenants

Note: These deductions generally apply only to income-producing properties—not your private residence.

Expenses You May Be Able to Claim in the Same Financial Year:

• Interest on loans
• Council rates
• Repairs and maintenance
• Depreciating assets costing $300 or less
• Advertising for tenants
• Water charges
• Land tax
• Cleaning, gardening and lawn mowing
• Pest control
• Insurance
• Legal expenses (related to rental activities, not purchase)

Expenses That Must Be Claimed Over Time:

• Some borrowing costs
• Renovations
• Depreciating assets over $300
• Construction costs (for properties built after 17 July 1985)

What Can’t Be Claimed:

• Stamp duty on the purchase of the property
• Repayments of the principal portion of your loan
• Legal fees related to the purchase—these are added to the property’s cost base
• Utility bills paid by your tenants

Tax legislation is always evolving, and each investor’s situation is different. That’s why it’s essential to speak with a qualified tax professional before you lodge your return.