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Don’t Miss Out On These Investment Property Tax Deductions


We all want to save money on tax, especially when we’ve invested in property. At Blue Orchid Accounting, our professional and friendly team is on hand to help you make the most of your investments. Here are some of the top tax deductions you won’t want to miss out on as the owner of an investment property.

Council Rates

While rates can be deducted in the same year they’re paid, you can only claim them for periods in which your house was rented.

Building Depreciation

If your property was built after 16 September 1987, you may be able to claim depreciation on the original construction costs of your property. Depreciation rates are calculated at 2.5% a year for 40 years.

You can also claim deductions if your property was renovated after 27 February 1992, at the same rate of 2.5% for 40 years. Deductions can only be claimed during the periods in which your property was available for lease or was rented.

Appliance Depreciation

You may be able to claim deductions on brand-new and second-hand appliances, such as dishwashers, washing machines or stoves, if your property was bought before 7:30 pm on 9 May 2017 and if the appliance was installed before 1 July of the same year. If you do not meet these criteria, you can only claim deductions if the appliance was brand new, or if no one has previously claimed depreciation on the same asset.

Repairs And Maintenance

Repairs classify as immediate deductions if they factor in as wear and tear. If you’re conducting a repair after bad weather or servicing an appliance, the costs of labour can be claimed as a deduction. Replacing an appliance, however, counts as a depreciation deduction.

Any replacements or maintenance intended to increase property value must be claimed as capital works deductions, at a rate of 2.5% a year for 40 years.

Pest Control

You can claim hiring a pest control service as an immediate deduction by a property’s tenant or landlord.

Garden and Maintenance

The maintenance or replacement of plants and garden structures can be claimed by property owners as an immediate deduction. If a new plant or garden addition increases property value, this is regarded as an “improvement” and must be depreciated rather than immediately claimed.


Property owners can claim the costs of insuring a rental property. The amount can be identified by referring to quarterly statements or through obtaining information from your insurer.

Stationery and Phone Costs

Any stationery, phone contracts, internet or electricity usage occurring in the course of running your investment property can be claimed as a deduction. It is important to note that the ATO may query your claim if it is higher than the average for property investors.

Rental Advertising

Any expenses you incur while marketing your rental property online or through print media, brochures or signage can be claimed as advertising expenses. These can be claimed against the income you earned in the year that you paid for the advertising in question.

Land Tax

You are able to claim land tax if you have a rented dwelling on your property. As the levy and timing when you can claim vary across states, it is important you consult a taxation expert or the appropriate government channels.

Ensure Financial Security with Blue Orchid Accounting

Many individuals and businesses throughout the Central Coast region have benefited from the quality financial advice and comprehensive taxation and accounting services offered by our expert and friendly team. Put yourself, your finances and your investments in great hands. Contact us today on 1800 008 664.