What rental expenses can I claim?

As an investor, you’re probably wondering which expenses can and cannot be claimed. When you own a rental property, you’re likely to have maintenance and administrative costs. You can claim all or some of these costs as a deduction against your rental income. This reduces the tax you pay on the rental income you receive.

Check out our useful Property Expense Guide below to help you figure out what you can claim and can’t claim. If you need help with your rental property accounting, enquire below and we will help you keep track of rental expenses and provide help when you need it.

Claimable rental expenses:

  • Rates and insurance.
  • Agents’ fees and commission relating to the rental of the property.
  • Repairs and maintenance (except if they substantially improve the property).
  • Motor vehicle and travel expenses.
  • Legal fees for arranging the mortgage or finance to buy the property from the 2010 income year and beyond.
  • Mortgage repayment insurance.
  • Accounting fees for the preparation of accounts.
  • Depreciation on the building prior to the 2011-2012 income year.
  • An allowance for a home office if you manage the properties yourself.
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Unclaimable rental expenses:

  • The purchase price of a rental property.
  • The capital part of any mortgage repayment(s) – “principal”.
  • Interest on money which you borrow for some purpose other than financing the rental property, even if you use the rental property to secure such a loan.
  • Repairs and maintenance that go beyond replacement and are in fact improvements to the property. These are added to the property value.
  • Real estate agent’s fees incurred as part of buying or selling the property.
  • Additions or improvements to the property.
  • Depreciation on the building after the 2011-2012 income year.
  • Legal fees incurred in purchasing the property.

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