There are so many tax benefits that stem from an investment property. Many people are unaware of the tax deductions that they are eligible to claim relating to the expenses incurred whilst owning and maintaining an investment property.

By claiming tax deductions that are available to you, there can be a reduction in rental profit and ultimately reduction in your taxable income. Some great examples that slip past at tax time are:

Advertising for Tenants

This is only available if your property is available for rent. It could include advertising with local real estate agencies, posting advertisements in the newspaper/local publications and posting notices at local shopping centres.

Bank Charges

The charges that are incurred on your loan account (e.g. monthly fees) are tax deductible. Don’t forget to take your bank statements with you when organizing your tax return.

Body Corporate Fees

These are the quarterly fees that cover the costs of maintaining the common areas of your building. For a rental property, these are tax deductible.

Borrowing Expenses

Including loan establishment fees, title search fees, and preparation & filing mortgage documents, mortgage broker fees, stamp duty charges, valuation fees and mortgage insurance.

Construction Expenditure

For construction expenditure or capital works, you can claim a tax deduction. The deduction is over a 25 or 40 year term depending on the type of construction and the year that the construction was completed. The construction costs of a brand new property are deductible over 40 years.


Professional cleaning and cleaning products for your investments property is tax deductible.

Electricity and Gas

As long as you are not the tenant in the property, electricity and gas bills are tax deductible.


If this is a service that you provide your tenants, foxtel is tax deductible.

Pest Control

If you pay for your investment property to be sprayed or fumigated by a pest controller, then you are generally entitled to a tax deduction.

Keep in mind that there are so many things that you are able to claim. Ensure that you speak in detail with your Tax Agent to make sure you take full advantage of what you are entitled to.