Last week, I attended a webinar on smart tax strategies for property investors — and I thought it would be great to share some key takeaways with you this month.
We are all busy with our day-to-day lives and sometimes forget to take advantage of, or even realise, the legal ways to reduce tax on investment properties. Here is a quick summary of what I learned:
Disclaimer: Always seek advice from your accountant before acting on any of these points. Everyone’s situation is different.
- 100% Interest Deductibility Returns
From 1 April 2025, you can again claim 100% of the interest on a loan used for residential rental property.
If you own multiple investment properties or are borrowing to purchase one, make sure your loan structure allows you to fully utilise this deduction.
- Claim Your Chattels
Costs for items like appliances, carpets, and curtains used in a rental property are often deductible.
Small-value items may even be claimed in full in the same year of purchase rather than being depreciated over time.
- Do not Miss Compliance Deductions
Expenses related to meeting Healthy Homes Standards — such as insulation, heating, ventilation, and moisture barriers — are deductible because they relate directly to earning rental income.
Caveat: If the work improves the property beyond legal compliance (for example, installing a higher-value system), it may be considered a capital expense and not immediately deductible.
- Home Office Deductions
If you handle admin or any other work from home, you may be eligible to claim a portion of your home expenses as a home office deduction.
A general rule of thumb is around 10% of home-related costs, depending on your setup and usage.
With insurance premiums, body corporate fees, and council rates continuing to rise, these tax tweaks can help improve your cashflow and reduce your overall tax obligations.
Once again, have a chat with your accountant or financial advisor for personalised advice — these are not one-size-fits-all recommendations, and your structure and goals make all the difference.