Tax Minimisation

In Australia, the government allows property investors to apply their profit or loss to their personal income, if the investor makes a loss they claim that loss as a tax deduction and if they make a profit they pay tax at their marginal tax rate.

By doing this, investors not only reduce their tax and increase their income they also allow their personal wealth to grow through their investment portfolio. For many working families, couples and singles, this is a win-win that has created financial security that otherwise would not have been possible.

 

Tax Claims

You can claim a wide range of running and management expenses against your investment property’s income, including:

  • Solicitor / Conveyancer
  • Finance / Bank Fees
  • Property Management Fees
  • Book-keeping / Accountants Fee
  • Council and Water Rates
  • Advertising for Tenants
  • Insurance
  • Interest on your Investment Loan
  • Reasonable travel expenses to inspect your property
  • Gardening / Lawn Mowing
  • Repairs and Maintenance
  • Depreciation on the building cost plus fixtures and fittings contained within the building, this will require a Quantity Surveyors Report (Depreciation Schedule)

In order to make taxation claims, you need to keep official documentation including receipts and bank statements (refer to the www.ato.gov.au/General/Property/Residential-rental-properties/Expenses-you-can-claim/ for a complete list of claims or talk to your Accountant.