Claiming eligible expenses against your rental income is key to reducing tax liability. Did you know that the Australian Taxation Office (ATO) allows deductions for a range of rental property costs?

Deductible expenses include advertising for tenants, property management fees, insurance premiums, and accounting fees related to your rental. Council rates, utilities, gardening, cleaning of common areas, and interest on investment loans are also deductible.

Repair costs to restore something worn out or damaged can be claimed immediately. However, initial repairs upon purchasing are non-deductible. Depreciating assets like furniture and renovations can be deducted over their effective life.

Major capital works deductions can be claimed at 2.5% each year over 40 years from completion date.

It's crucial to maintain comprehensive records substantiating all claims. Seeking professional tax advice ensures you maximise legitimate deductions while remaining compliant with ATO regulations.

A thorough understanding of deductions allows you to enhance your cash flow and profitability as a property investor. We recommend all landlords obtain a BMT Tax depreciation report to maximise yield.