What Can I Claim on My Investment Property?
One of the biggest benefits of owning an investment property is the ability to claim certain expenses at tax time.
However, many investors aren’t completely sure what they can claim, what they can’t, and why the distinction matters.
Here’s a clear, practical breakdown of what you can generally claim on an investment property — and how it all fits together.
Rental Income Must Be Declared First
Before looking at deductions, it’s important to understand the starting point.
All rental income received from your investment property must be declared in your tax return. This includes rent paid by tenants and any other income related to the property.
Deductions are then applied against this income.
Loan Interest
Interest on a loan used to purchase or refinance an investment property is often one of the largest deductions.
Generally, the interest portion of repayments may be deductible — not the principal.
This is why loan structure and how funds are used are so important.
Property Management and Letting Fees
If you use a property manager, fees charged for managing the property are usually deductible.
This can include:
- Ongoing management fees
- Letting or tenant placement fees
- Advertising costs to find tenants
Council Rates and Utilities
Council rates and certain water charges related to the property may be deductible.
These are ongoing costs of owning an investment property and are commonly claimed each year.
Insurance
Insurance related to the investment property is generally deductible.
This can include:
- Landlord insurance
- Building insurance
- Contents insurance (where applicable)
Repairs and Maintenance
Repairs and maintenance are often deductible when they involve fixing something back to its original condition.
Examples may include repairing a broken appliance, fixing a leak, or replacing damaged items.
It’s important to distinguish repairs from improvements, as they are treated differently for tax purposes.
Depreciation
Depreciation is a common and often overlooked deduction.
It recognises the wear and tear of certain parts of an investment property over time and is a non-cash deduction.
Depreciation is usually outlined in a depreciation schedule and applied by your accountant.
Other Ongoing Expenses
Depending on the property, other deductible expenses may include:
- Body corporate or strata fees
- Pest control
- Cleaning between tenancies
- Accounting fees related to the property
These costs are generally deductible because they relate to earning rental income.
What You Generally Can’t Claim Immediately
Some costs are not immediately deductible.
These can include:
- The principal portion of loan repayments
- Purchase costs such as stamp duty and legal fees (these are treated differently)
- Improvements that add value or extend the life of the property
These items may be handled differently for tax purposes and should be discussed with an accountant.
Why Accurate Records Matter
To claim deductions correctly, you need clear and accurate records.
Invoices, statements, and reports support your claims and make tax time far easier.
Tax professionals such as
The Accountants
can help confirm what you’re entitled to claim based on your individual circumstances.
How Finance Structure Influences What You Can Claim
While deductions are claimed at tax time, your loan structure influences which expenses exist.
Interest costs, refinancing decisions, and how funds are used all affect tax outcomes.
How Chase Helps Investors Get the Structure Right
Chase Douglas has extensive experience in mortgage lending and helps investors structure loans in a way that supports clarity, affordability, and long-term strategy.
Clear loan structures make it easier to track interest, understand deductions, and work seamlessly with your accountant.
Not Sure What You Can Claim?
Understanding what you can claim on your investment property helps you plan better and avoid mistakes.
👉 Book a conversation with Chase Douglas to review how your finance structure supports your property and tax strategy.
Clear structure leads to clearer outcomes.
