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What expenses can I claim for my rental property ?

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From our business partner, Gerhardy Whitelum Taxation & Business Advisors, 24 Gawler Street, Nuriootpa.

The following is a list of common property investment expenses:

  • Advertising for tenants
  • Bank charges
  • Borrowing expenses
  • Capital works *1
  • Council rates
  • Decline in value of depreciating assets *2
  • Gardening and lawn mowing
  • Insurance
  • Interest expenses *3
  • Land tax
  • Legal expenses
  • Pest control
  • Property Agent fees
  • Repairs and maintenance *4
  • Telephone
  • Travel to inspect property *5
  • Water charges

1. Capital works
You can deduct certain kinds of construction expenditure. In the case of residential rental properties, the deductions would generally be spread over a period of 40 years.

2. Decline in value of depreciating assets
Depreciating assets include items such as air conditioners and stoves. You can deduct an amount equal to the decline in value of a depreciating asset. From 1 July 2017, the Government will limit plant and equipment depreciation deductions to outlays actually incurred by investors in residential real estate properties ie you will no longer be able to claim depreciation on plant and equipment that was installed by a previous owner.

3. Interest expenses
Interest paid on the loan used to purchase the property is fully deductible, provided that all the money borrowed was used to purchase the property, and not for any other use.

4. Repairs & maintenance
Expenses for repairs to the property will be deductible as long as the repairs relate directly to wear and tear or other damage that occurred as a result of your renting out the property.
Examples are replacing worn or damaged curtains, blinds or carpets between tenants, and repainting faded or damaged interior walls.

5. Travel to inspect property
From 1 July 2017, the Government will not allow deductions for travel expenses related to inspecting, maintaining or collecting rent for a residential rental property.

If you require clarification or advice on any of this information, please contact us:
P: 08 8562 4332
24 Gawler Street
Nuriootpa SA 5355


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