Immediately deductible rental expenses

Are you?
– A taxpayer who owns rental property?

At a glance:
– Certain rental expenses may be claimed as an immediate deduction against rental income.

You should:
– Consider whether the expenses incurred in respect of the property are allowable deductions.
– Contact us if you require any clarification or advice.

Some rental expenses are immediately deductible in the year they are incurred or may require apportionment over different periods.

Below is a list of rental expenses that taxpayers may be entitled to an immediate deduction in the year they are incurred.

• Advertising for tenants;
• Bank charges;
• Body corporate fees and charges;
• Cleaning;
• Council rates and land tax;
• Electricity and gas;
• Gardening and lawn mowing;
• In-house audio/video service charges;
• Insurance;
• Interest on loans;
• Lease document expenses;
• Pest control;
• Property agents fees and commissions;
• Repairs and maintenance;
• Tax-related expenses;
• Travel and car expenses; and
• Water charges.

Apportionment of rental expenses may be required if:

• The property is only rented out for part of the year;
• Only part of the property is used to earn rent; and/or
• The rent is not charged at commercial rates.

For more information, click here.

Remember:
– Not all rental expenses can be claimed as an immediate deduction.